Given the following dividend pattern for the next 7 years, Year 1 9.00 Year 2 10.00 Year 3 11.00 Year 4 11.20 Year 5 11.50 Year 6 Year 7 12.00 15.00 What is the (annual) geometric rate of growth? 8.89% 7.57% 9.16% 10.76% The constant growth dividend model requires that 1) we set g = 0 if the return rate r is greater than the growth rate g of the dividend stream 2) the return rate r is greater than the growth rate g of the dividend stream 0 3) the return rate r is lesser than the growth rate g of the dividend stream 4) the return rate g is greater than the growth rate r of the dividend stream Question 8 (1 point) Saved is the market of first sale in which companies first sell their authorized shares to the public. The 1) Nasdaq market 2) both primary and secondary markets 3) secondary market 4) primary market Company XC is going to next dividend (Diva) of $2.00. The growth rate (g) of dividends is 2% and the required rate of return (r) is 10%. What is the stock price today? 1) 17.00 O2) 25.50 3) 25.00 4) 20.40 4pass Inc. just paid an annual dividend of 2.12. The company follows a dividend policy that raises dividends annually at a rate of 2% (and expects this rate to go forever). The required rate of return is 10%. What is today's stock price? 1) 12.94 2) 15.73 3) 21.20 4) 26.50 5) 27.03