Question: 1.What should be the stock value one year from today for a stock that currently sells for $35, has a required return of 15%, an

1.What should be the stock value one year from today for a stock that currently sells for $35, has a required return of 15%, an expected dividend of $2.80, and a constant dividend growth rate of 7%? Show your calculations!

A.$37.45

B. $37.80

C. $40.25

D. $43.05

2.Anna owns shares of CD stock and for each share she expects to receive a dividend amount of $2.38 next year. Investors expect the stock to sell for $46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%? Show your calculations!

A.$38.19

B. $42.63

C. $40.53

D. $45.77

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