Stocks

1 Main Street Antiques is planning on paying an annual dividend of $2.40 per share next year. The company is slowly downsizing and is decreasing its dividend by 2 percent annually. What is the current value of this stock at a discount rate of 15 percent?

2 A stock sells for $13.67 a share and has a required return of 14 percent. Dividends are paid annually and increase at a constant 3 percent per year. What is the amount of the last dividend paid?