The firm recently announced that all future dividends

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1. Green Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all future dividends will be increased by 3.1 percent annually. What is one share of this stock worth to you if you require a rate of return of 16.7 percent?

A. $11.91

B. $12.95

C. $12.28

D. $10.54

E. $13.07

2. The required return on Vegan Delite stock is 12.6 percent and the dividend growth rate is 4.1 percent The stock is currently selling for S26.80 a share. What is the dividend yield?

A. 5.16 percent

B. 8.50 percent

C. 11.75 percent

D. 12.50 percent

E. 13.36 percent

Reference no: EM131523238

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