Use the following information to answer the next 6 questions:

A stock is just paid a dividend of $0.91 and is growing at a constant rate of 10 percent per year. If the required rate of return is 15 percent, what is the stocks expected price 2 years from today?

1- The stock price will be computed using the:

a- Super-normal dividend growth formula

b- Two-Stage dividend growth formula

c- Nonconstant dividend growth formula

d- Constant dividend growth formula

2- The formula for computing the stock price is:

a- P₀ = D₁/(r_s + g)

b- P₀ = D₁/(r_s x g)

c- P₀ = D₁/(r_s - g)

3- Using the formula you selected above, what is the stock price? P₀ = $