The Company is expected to announce their annual dividend tomorrow. One year ago they paid a dividend of $1.90 , and 5 years ago they paid $1.53 .You believe that future dividends will grow by the same rate as past ones. You are aware that riskless government securities are yielding 6.5%, and you make an offer to purchase the stock so that you earn 7.1% above the riskless rate.

25.

What is the company's dividend growth rate?

How much is your offer price?