questions 32 & 33

QUESTION 32 Consider a company which currently pays a $1.00 dividend. They plan to increase dividends by 20% next year, and then pay that perpetually. If my required rate of return is 6%, what should the share price be? A. $14.69 B. $16.67 C. $18.72 D. $20.00 QUESTION 33 Consider now a company which pays an $0.80 dividend this year. They plan to increase this at a modest rate of 4% indefinitely. If my required rate of return is 9%, what should the share price be? A. $21.00 B. $20.00 C. $16.80 D. $9.33