Suppose a company is expected to grow at 25% for the next two years and then will have a constant growth of 8%. The company paid dividends of $0.75 this year. If the required rate of return is 10%, what is the value of the stock today?

A) $52.45

B) $54.12

C) $60.82

D) $62.35

Sam is considering purchasing a call option on ABC stock. The call has a premium of $3, an exercise price of $50, and ABC is trading at $51 per share. Which of the following statements about the call option is correct?

A) The call has an intrinsic value of $1 and a time value of $2.

B) The call has an intrinsic value of $0 and a time value of $3.

C) The call has an intrinsic value of $3 and a time value of $2.

D) The call has an intrinsic value of $0 and a time value of $1.