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