Westmount Drilling Services shares are currently trading at $30.00 with a justified

P/E of 20. If the dividend payout ratio remains at 50% and the dividend growth rate

is a constant 5% what is the required rate of return?

7.50%

8.50%

7.25%

8.25%

Iron Horse Motor Works Corp. shares are currently trading at $55.00 (assume intrinsic value) and last year's dividend per share was $2.00. If the required rate of return for Iron Horse shares is 15% what is the growth rate of dividends?

A. 8.85%

B. 11.00%

c) 9.59%

D) 12.20%

PLEASE ANSWER BOTH!! THANK YOU