1. In the next five years, the annual dividends of a stock are expected to be $2.0, $2.1, $2.2, $3.5, and $3.75. In addition, the stock price is expected to be $40.00 in five years. If the discount rate is 10%, what is the current value of the stock? Write down the formula and use the NPV function in your calculator to solve for the stock's value. 2. A company recently paid a dividend of $1.8. An analyst examines the financial statements and historical dividend policy of the company and expects that the firm's dividend will grow at a constant rate of 3.5% indefinitely. The analyst also determines the discount rate is 10%. Calculate the current value of the company's share