Question $1$

A stock$$s current dividends are $$6$ a year, expected to grow at $3\%.$ If the rate is $15\%$ what is the value of this stock according to the Gordon formula

$-$$$25$

$-$$$50$

$-$$$100$

$-$$$150$

Question$2$

Now consider the value of the stock that pays no dividends currently and is not expected to pay any dividends for next $5$ years. At the end of year $5$ the stock will pay a dividend of $$6$ growing at $3\%$ a year. If the rate of return is $15\%$ what is the current value of this stock:

$-$$$25$

$-$$$50$

$-$$$100$

$-$$$150$