1. An investor wishes to know what the value of a common stock is if it pays a dividend of $7.00 today. The company's dividend growth rate is 5.5% and the investor expects the stock to earn 7%. What is the value?

7/(.07-5.5)=14.58

2. If a common stock is worth $80 and the dividend growth rate is 5% with a dividend expected to pay $2.00 in a year's time, what is the expected rate of return?

kcs=2/80+5%=12.50%

I was told that the answers to these problems were wrong. Can someone help me.