1. ?Staton-Smith Software is a new? start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of ?$3.75 with a constant growth rate of 4?%, with the first dividend at the end of year six. The company will be in business for 25 years total. What is the? stock's price if an investor wants

a. a return of 11?%?

b. a return of 13?%?

c. a return of 24?%?

d. a return of 35?%?

2. Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 4?%. Last? year's dividend, Div, was $6 per share. The company will be in business for 70 years with no liquidating dividend. What is the price of this stock if

a. an investor wants a return of 7?%?

b. an investor wants a return of 11?%?

c. an investor wants a return of 13?%?

d. an investor wants a return of 15?%?

e. an investor wants a return of 18?%?