Teder Corporation stock currently sells for $80 per share. The market requires a 13 percent return on the firm's stock.

Required :

If the company maintains a constant 7 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

rev: 09_18_2012

$6.67

$16.07

$4.31

$4.80

$4.49

Thirsty Cactus Corp. just paid a dividend of $1.40 per share. The dividends are expected to grow at 35 percent for the next 8 years and then level off to a 6 percent growth rate indefinitely.

Required :

If the required return is 13 percent, what is the price of the stock today?

rev: 09_18_2012

$112.74

$87.98

$3.34

$115.04

$117.34