1. A firm is planning on paying its first dividend of $2.7 three years from today. After that, dividends are expected to grow at 3.9% per year indefinitely. The stock's required return is 14%. What is the intrinsic value of a share today?

2. Zombie Manufacturing Company is expected to pay a dividend of $3.38 in the upcoming year. Dividends are expected to grow at 7.7% per year. The risk-free rate of return is 2.4%, and the expected return on the market portfolio is 9.4%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth dividend discount model to determine the value of the stock. The stock's current price is $100. What is your estimate for the market capitalization rate of this asset? Enter answer in percents to two decimal places.