1. Green Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be increased by 3.1 percent annually. What is one share of this stock worth to you if you require a rate of return of 16.7 percent?
A. $11.91
B. $12.95
C. $12.28
D. $10.54
E. $13.07
2. The required return on Vegan Delite stock is 12.6 percent and the dividend growth rate is 4.1 percent The stock is currently selling for S26.80 a share. What is the dividend yield?
A. 5.16 percent
B. 8.50 percent
C. 11.75 percent
D. 12.50 percent
E. 13.36 percent