1. Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidlyat a rate of 47% per yearduring Years 4 and 5, but after Year 5, growth should be a constant 5% per year. If the required return on Computech is 18%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

2. A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D₁ = $1.75), and it should continue to grow at a constant rate of 10% a year. If its required return is 13%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent.