QUESTION 2 A firm plans to begin paying a constant annual dividend of $1.50 a share beginning five years from now. If you require a rate of return of 7%, what is the most that you would be willing to pay for a share of this stock TODAY? $21.43 $16.35 $15.28 $14.28 QUESTION 3 The current stock price of ABC, Corp. is $300 per share. ABC, Corp. just paid an annual per-share dividend of $3. Over the past 5 years, this dividend has been grown annually at a rate of 35%. A respected analyst assumes that the current growth rate of dividends will hold up for the next 5 years, after which dividend growth will slow to 8% annually. Use the solver in Excel to compute the cost of equity? 11.52% 12.88% 11.15% 32.76%