1. Blunderbluss Manufacturing's balance sheets report $205 million in total debt, $85 million in short-term investments, and $52 million in preferred stock. Blunderbluss has 20 million shares of common stock outstanding. A financial analyst estimated that Blunderbuss's value of operations is $845 million. What is the analyst's estimate of the intrinsic stock price per share? Round your answer to the nearest cent.

2.

Woidtke Manufacturing's stock currently sells for $27 a share. The stock just paid a dividend of $2.80 a share (i.e., D₀ = $2.80), and the dividend is expected to grow forever at a constant rate of 7% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

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What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answer to two decimal places.