7. The next dividend payment by Savitz, Inc., will be $3.35 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever.

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

A. 4.00%

B. 7.61%

C. 11.61%

D. 11.03%

E. 11.38%

8. Hudson Corporation will pay a dividend of $2.60 per share next year. The company pledges to increase its dividend by 4.30 percent per year indefinitely.

If you require a return of 9.60 percent on your investment, how much will you pay for the company's stock today?

A. $47.09

B. $49.06

C. $17,93

D. $51.02

E. 47.03

9. Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.

If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

A. $3.62

B. $7.62

C. $4.05

D. $3.81

E. $4.00