Question 25 A stock paid its annual dividend of $4.50 per share, yesterday. The dividend growth rate for the stock is expected to be 30 percent per year for the next two years. Thereafter, the dividend growth rate is expected to be 4.20 percent per year indefinitely. The appropriate discount rate for the stock is 12 percent. Determine the price of the stock today. $84.93 $80.29 $87.05 $96.77 $92.28 Question 26 A stock analyst uses industry PE ratios as justified PE multiples for stocks. A stock's industry PE ratio is 21.7 and the stock's earnings per share for this year (EPS) is $3.82. If the earnings growth rate is 4.50 percent, what is the expected price per share of this stock five years from today? $92.79 $103.30 $101.55 $86.62 $107.95