1)

A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 30 percent for the next 9 years and then level off to a growth rate of 9 percent indefinitely.

If the required return is 13 percent, what is the price of the stock today?

2)

Burnett Corp. pays a constant $19 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends forever.

If the required return on this stock is 10 percent, what is the current share price?