1. A stock with the required rate of return of 10.91% is expected to pay a $1.02 dividend over the next year. The dividends are expected to grow at a constant rate forever. The price (value) of the stock is currently $23.3 per share. What is the constant growth rate (in %, to the nearest 0.01%)?

2. You expect a stock to pay out dividends of $1.23 next year (annual dividend). If the required return is 7% and dividends are expected to grow at a constant rate of 6%, what is the stock's intrinsic value?