1. Martin corporation has just paid a dividend of $2.50. For next 3 years dividends are expected to grow by 15% followed by 8% in next 2 years. After this the firm expect 4% constant growth rate. Investors have a have a required return on the stock of 10%. What would be the intrinsic value of stock today?

2. What is the price of a bond that matures in 15 years pays a quarterly coupon with 8% annual coupon rate, and has face value of $5000 the market yield is 10%