Question: !!! Two - Parts for this Question !!! Part 1_ Crazy Fans Inc pays a current dividend of $1.36 with a growth rate of 2.9%.

!!! Two - Parts for this Question !!!

Part 1_ Crazy Fans Inc pays a current dividend of $1.36 with a growth rate of 2.9%. Crazy Fans shareholders require an 11.1% rate of return. The value of the stock using the dividend discount model is closest to:

A) $17.07

B) $16.58

C) $17.28

D) $16.84

Part 2_ BCOOL pays a current dividend of $0.75 per share. The annual growth rate in dividends is expected to be 5% and BCOOL's shareholders require a return of 12.5%. The value of the stock is closest to...:

a) $10.00

b) $10.50

c) $11.00

d) $9.50

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