Question: (A). Use the Dividend Discount Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay

(A). Use the Dividend Discount Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $9.57 per share in one year. ELO shares are currently trading for $220.51 on the NYSE, and the expected annual rate of return for ELO shares is 9.25%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).

(B). CCR stock is currently trading for $106.3 per share. The firm is expected to pay a dividend of $8.94 per share in one year and to increase the dividend at 5% each year thereafter. Based on the Dividend Discount Model, what the the annual required rate of return for CCR stock? Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).

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