1) ABC pays an annual dividend, and it has reached its matured stage. Management thinks that they are able to grow their earnings by 4% a year on average indefinitely. Therefore, they expect to raise their dividends by 4% every year. 

We have the following information:
A. Dividend of $4.50 per share just paid today  
B. The market's required return is 6.5%

What is ABC's estimated fair stock price today? 

What is the estimated fair price of ABC 5 years from now? What is the total return?

2) Cup of Tea Inc. paid an annual dividend of $2.5 per share today. It is expecting to grow this dividend by 4% a year until a major newly developed product is finally launched and boosts the growth rate forever. This product is expected to be ready in three years' time and the growth rate will be bumped up by 1.5%. The market is expecting a return of 6% from companies such as Cup of Tea Inc.

Please estimate its fair market value per share.