1. Hurley Enterprises' stock has an expected return of 14%. The stock's dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. One year from now, the stock's expected stock price is: __________.
A. $50
B. $54
C. $57
D. $63
2. A stock is expected to pay a dividend of $0.50 at the end of the year. The required rate of return is rs = 10.8%, and the expected constant growth rate is g = 6.50%. What is the stock's current price?
A. $8.55
B. $10.98
C. $11.63
D. $19.65