1.

A company just paid a dividend of $1.4 and it currently has a very high growth rate of 10.3%. Analysts expect this high growth rate to remain at this pace for 3 years, In year 4, the growth rate is expected to decay down to the average economic growth rate which is currently assumed to be 2.46%. If the relevant required return is 11.7%, then what is the stock's intrinsic value using the multistage DDM method? State your answer as a dollar amount with two decimal places.

2.

A stock has a current price of $26.93. You expect it to reach $36.5 at the end of one year and pay $0.89 in dividends. What is your expected holding period return? State your answer as a percentage with two decimal places and not in decimal form (i.e. 13.21 not .1321).