Chill Out Novelties sells ice cream bars from a kiosk near campus. Fixed costs are $390 per week and the variable cost is $.50 per ice cream bar. Complete the following table for the levels of ice cream bars sold per week.

The correct answer is D) $20.16. To calculate the price of the stock, we need to use the dividend discount model (DDM): Price = Dividend / (Required Return - Growth Rate) First, we need to find the expected dividend per share for the next two years. We know that the last dividend was $.65 per share, so we can calculate the expected dividends as follows: Year 1 dividend = $.65 x (1 + 14%) = $.74 per share Year 2 dividend = $.74 x (1 + 14%) = $.84 per share After Year 2, the growth rate will level off to 8%, so we can calculate the perpetual growth rate as follows: Perpetual Growth Rate = 8% Now we can plug these values into the DDM formula: Price = $.84 / (12% - 14%) + ($.84 x (1 + 8%)) / (12% - 8%) Price = $20.16 Therefore, the price of the stock should be $20.16 if investors require a 12% return.