1. A common stock last paid a dividend of $1.20 and it is expected to grow at 6% for the next 5 years. If your required rate of return is 10%, what is the most you should pay today?
a. ?$30.31
b. ?$32.71
c. ?$40.15
d. ?$31.80
2. King Waterbeds has an annual cash dividend policy that raises the dividend each year by 66%. The most recent? dividend, Div 0Div0?, was $ 0.35 per share. What is the? stock's price if
a. an investor wants a return of 7%
b. an investor wants a return of 10%
c. an investor wants a return of 11?%
d. an investor wants a return of 12%
e. an investor wants a return of 171%