1. Weisbro and Sons common stock sells for $53 a share and pays an annual dividend that increases by 4.8 percent annually. The market rate of return on this stock is 10.50 percent. What is the amount of the last dividend paid by Weisbro and Sons?

$3.17 $2.88 $5.31 $2.43 $2.83

2. The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.90 per share. What is the current value of one share of this stock if the required rate of return is 8.40 percent?

$162.24 $224.02 $178.62 $226.92 $175.72