1. Winter Time Adventures is going to pay an annual dividend of $3.14 a share on its common stock next week. This year, the company paid a dividend of $3.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth 11 years from now if the applicable discount rate is 9.0 percent?
$114.34
$142.77
$129.44
$110.64
$119.67
2. Warr Corporation just paid a dividend of $2.25 a share (that is, D0 = $2.25). The dividend is expected to grow 7% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
D1= $___
D2= $___
D3= $___
D4= $___
D5= $___