1. A company recently paid a $1.48 per share annual dividend. Dividends are expected to increase by 2.5% annually. What is the stock worth at t=0 if the DR is 14 percent?

2. A company will pay a dividend next year of $1.60. The company will then increase its dividend by 10% each year for two years after which it will maintain a constant 2% dividend growth rate. What is one share worth today at a required rate of return of 14 percent?