1. Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.52, $1.58, and $1.60 a share over the next three years, respectively. After that, the dividend will be constant at $1. 95 per share per year. What is the market price of this stock if the market rate of return is 12.7 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

2. Currently, a firm has an EPS of $2.77 and a benchmark PE of 23.42. Earnings are expected to grow by 3.8 percent annually. What is the estimated current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)