1. ABC Inc. just paid a dividend of D₀ = $4.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 9.00%. What is the best estimate of the stock's current market value?

2. ABC Inc. forecasts that it will have the free cash flows (in millions) shown below. If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate since Year 2, what is the firm's total corporate value, in millions?