1. Assume the stockholders of Colorado Springs stock are in the 25 percent tax bracket. The closing price of the stock today was $42.80 a share. The firm pays a quarterly dividend of $1.00 per share. What is the expected opening price of the stock tomorrow if tomorrow is an ex-dividend date?

$35.78

$38.91

$42.05

$46.65

$51.23

2. GS Services just paid an annual dividend of $1.02 a share. The firm has a target payout ratio of .40 and a speed of adjustment value of .50. What is the expected value of next year's annual dividend if the firm expects its earnings per share to be $4.60?

$1.07

$1.15

$1.36

$1.43

$1.29