1. Stock Valuation. The next dividend for the Marx Company will be $4 per share. Investors require a 16 percent return on companies such as Marx. Marx's dividend increases at a constant rate of 6 percent every year. (6 points) a) What is the value of Marx's stock today? b) What is the value of Marx's stock in four years? 2. Stock Valuation. Color Inc., has been growing at a phenomenal rate of 30 percent per year because of its rapid expansion and explosive sales. You believe that this growth rate will last for three more years and that the rate will then drop to 10 percent per year. Dividends just paid were $5, and the required return is 20 percent. If the growth rate then remains at 10 percent indefinitely, what is the total value per share today? (5 points)