Which of the following will occur when the internal rate of return is greater than the required return?

		The profitability index will be greater than 1.0
		The profitability index will equal 1.0
		The profitability index will be less than 1.0

The firm just paid an annual dividend of $0.8 per share and plans to increase that amount by 25% next year. After that, the firm expects the dividend will grow by 2% annually. What is the expected value of this stock next year if the required return is 12 percent?

		9.9
		10
		10.2