The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3% annually. The last dividend it paid was $0.90 a share. What will the company's dividend be in six years? $0.90 $0.93 $1.07 $ $1.04 How much are you willing to pay for one share of stock if the company just pays 5.80 dividend every year, and you require an 8% rate of return? $10 $15 $8 Lee Hong Imports paid a $2.00 per share annual dividend yesterday. Dividends are expected to increase by 5% annually. What is the expected dividend in year 3 ( 3 years from now)? $2.21 $2.32 $2.1 $2 The value of common stock today depends on: the expected future holding period and the discount rate the expected future dividends and the capital gains. the expected future holding period and capital gains the expected future dividends, and the discount rate A stock you are interested in paid a dividend of $1 yestrday The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% growth rate. The discount rate is 12% Calculate the expected price of the stock $15.38 $21.04 $20.50 $22.27