1. If expected dividends grow at 4% and the appropriate discount rate is 12%, what is the value of a stock with an expected dividend of $2.05? (Round your answer to 2 decimal places.)
A. $26.63
B. $25.63
C. $12.81
D. $38.44
2. An issue of common stock's most recent dividend is $3.25. Its growth rate is 5.0%. What is its price if the market's rate of return is 8.1%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A. $110.08
B. $109.84
C. $52.42
D. $114.84