1.

Metroplex Corporation will pay a $2.10 per share dividend next year. The company pledges to increase its dividend by 7.00 percent per year indefinitely.

Required:

If you require an 12.00 percent return on your investment, how much will you pay for the company's stock today? 2.

Marcel Co. is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 5 percent thereafter.

Required:

If the required return is 10 percent and the company just paid a $1.20 dividend. what is the current share price? (Do not round your intermediate calculations.)