Westerfield, Inc. just paid a dividend of $$2\mathrm{.}50$ per share, and analysts expect its

dividends to grow at a constant rate of $3\%$ a year in perpetuity. What must be the

firm's share price today if its market capitalization rate is $12\%?$

$$28\mathrm{.}61$

$$32\mathrm{.}15$

$$36\mathrm{.}27$

$$41\mathrm{.}78$

Consider a firm that most recently paid a dividend of $$2\mathrm{.}50$ per share. Its

dividends are expected to grow at the rate of $25\%$ for the next $3$ years and at

$4\%$ thereafter. Find the price of a share of this firm if the RRR is $13\%.$

$$33\mathrm{.}57$

$$38\mathrm{.}82$

$$43\mathrm{.}33$

$$48\mathrm{.}38$