Supposed stock is expected to pay $.50 dividend every quarter and the required return is 8% per year with quarterly compounding. What is the price of this stock today?

$0.0625

$2.5

None of the choices

$6.25

Suppose Big PV Inc just paid a divined of $0.40 it is expected to increase its dividend by 4% per year. If the market requires a return of 10% on assets of this risk, how much should the stock be selling for

$3.96

$40

$10

$6.93