Question 29 A stock expects to pay a dividend of $5.09 per share next year. Dividends are expected to grow at 30 percent per year for the following three years. Thereafter, the dividend growth rate is expected to be 4.5 percent per year forever. Investors require a rate of return of 12 percent on this stock. Calculate the annual dividend expected to be paid by the stock nine years from today (D2). $14.56 $13.94 $17.15 $16.78 $20.08 Question 30 A stock is currently priced at $76.48 per share. The stock paid its annual dividend of $4.32 per share last week. Dividends are expected to grow at a constant rate of 4.75 percent per year in perpetuity. Calculate the expected return on this stock. 10.14% 5.92% 10.67% 10.40% 5.65%