1. Milly Corp's common stock is expected to pay a $5 dividend in the coming year. If investors require a 8% return and the growth rate in dividends is expected to be 3%, what should you be willing to pay for this stock?

2.Clooney Inc. common stock paid $7 in dividends last year. Dividends are expected to grow at a 9% annual rate forever. If your required rate of return is 12%, how much should you pay for this stock?