problem1: Ackert Company's last dividend was 1.55 dollars. The dividend growth rate is expected to be constant at 1.5 dollars for two years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return [rs] is 12.0 percent. Determine the current stock price?
[A] $39.30
[B] $40.48
[C] $41.70
[D] $37.05
[E] $38.16
problem2: Huang Company's last dividend was 1.25 dollars. The dividend growth rate is expected to be constant at 15 percent for three years, after which dividends are expected to grow at a rate of 6 percent forever. If the firm's required return [rs] is 11 percent, find out its current stock price?
[A] $32.49
[B] $33.50
[C] $34.50
[D] $30.57
[E] $31.52