1. ABC common stock is expected to have extraordinary growth of 20% per year for 2 years, after which the growth rate will settle into a constant 6%. If the discount rate is 15% and the most recent dividend was $2.50, what should be the approximate current share price?

A. $31.16

B. $33.23

C. $37.39

D. $47.77

2. What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grow at a constant rate of 5%, if the stock's required return is 13% and next year's dividend will be $4.00?

A. $67.60

B. $62.08

C. $68.64

D. $73.44

Please explain step by step in BA II Calculation