The next two questions pertain to the problem below:

You researched Jersey Kids Corp on Yahoo Finance and you found the following 2020 financial information:

Annual dividends per share paid in 2020-$3.00

Earnings per share-$2.50

Net Income-$2,500,000

Dividend growth rate for 2021-2%

Investor's required rate of return-10%

1.Approximately how much would you expect the current stock price of Jersey Kids Corp to be in 2021?

2.Which statement is correct

-The number of common shares is 750,000

-The profit margin is 1.75%

-The PE ratio is 4.5x

-The dividend yield in 2021 will be 4.5%

-The internal growth rate is 8.28%

-None of the above