Question: 1. The next dividend payment by Savitz, Inc., will be $4.45 per share. The dividends are anticipated to maintain a growth rate of 5 percent

1. The next dividend payment by Savitz, Inc., will be $4.45 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever.

If the stock currently sells for $44 per share, what is the required return?

Multiple Choice

14.36%
5.00%
15.11%
10.11%
14.81%

2. Hudson Corporation will pay a dividend of $3.30 per share next year. The company pledges to increase its dividend by 3.30 percent per year indefinitely.

If you require a return of 5.40 percent on your investment, how much will you pay for the company's stock today?

Multiple Choice

$150.86
$157.14
$163.43
$152.12
$36.72

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