1)

Jones Cois planning on increasing its annual dividend by 13.4 percent a year for the next4years and then decreasing the growth rate to 3.7percent per year. The company will pay a dividend of $1 per share at the end of this year. What is the current value of one share of this stock if the required rate of return is 8.2 percent?

2)NYP.com just paid a $10 dividend. The dividend will grow at 5 percent annually for the next 3 years. After that, NYP.com will never pay another dividend. If the required return is 12 percent, what is the current share price?