1. Kemet Corp, an information technology firm, has experienced abnormal growth. The company anticipates that it will grow at an abnormal rate of 24% for the next three years. After that, the growth rate will drop to match the industry's constant growth rate of 7%. If investors require 16% return and the firm's dividend per share is expected to be $2 (DIV₁ = $2), what should be Kemet's stock price?

2. Automatic Data Processing Inc. (ADP), an information technology firm, has experienced abnormal growth. The company anticipates that it will grow at an abnormal rate of 20% for the next three years. After that, the growth rate will drop to match the industry's constant growth rate of 6%. If investors require 20% return and the firm's dividend per share is expected to be $3 (DIV₁ = $3), what should be ADP's stock price?