1. The following information is available for a firm: the current dividend paid to equity holders is $3; the firm's cost of equity is 12% and it is expected that it will increase dividends by 4% each year in the foreseeable future. Using the constant growth model, the firm's common equity is:

$66.00 per share

$75.00 per share

$25.00 per share

$37.50 per share