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Use the following information to answer Questions 18 and 19: Microtech plans to increase their dividends by 5% the first year and has pledged to

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Use the following information to answer Questions 18 and 19: Microtech plans to increase their dividends by 5% the first year and has pledged to increase their dividends by 2% each year thereafter in perpetuity. The required rate of return on Microtech is 14% and they just paid a $2 dividend. 18. What will the dividend per share payout be in year 1? A. $2.00 B. $2.02 C. $2.04 D. $2.28 E none of the above 19. What is the value of the stock today? A. $16.67 B. $17.00 C. $17.50 D. $23.33 E none of the above

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