1. Stone Corporation is expected to pay the following dividends over the next four years: $9, $15, $17, and $3. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on the stock is 8 percent, what is the current share price?

2. What is the present value of a series of $5,000 annual payments that will start 5 years from now and last until 14 years from now (10 payments), if the discount rate is 16%?