1 & 2

D Question 1 2 pts A stock is expected to pay a dividend of $2.7 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 5.0% per year forever. If its required return is 10.7%, the stock's price today should be $_ Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35). Margin of error for correct responses: +/-05 D Question 2 2 pts A firm's earnings and dividends are expected to decline at a constant rate of 5% per year. The most recent dividend (Divo) was $3.9 and the required return on the stock is 11%. The current price of the stock should be $ Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35). Margin of error for correct responses: +/-.05