question 1

a) Over the next three years, Distant Groves will pay annual dividends of $1.65, $.172, and $1.80 a share, respectively. After that, dividends are projected to increase by 3.8 percent per year. What is one share of this stock worth today at a required return of 14.9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b) JL Co. stock currently sells for $76 per share and the required return is 10.5 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it's the company's policy to always maintain a constant growth rate in its dividends? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)