1.) Suppose you are evaluating a stock that just paid a quarterly dividend of $1.25, you expect future dividends on this stock to increase at a rate of 4% per quarter, and you think the appropriate rate of return on this stock is 7% per quarter. How much would it be worth?

2.) Suppose the stock in Question 1 above, is currently trading at $35.03. What can you say about this stock? (undervalued/overvalued/fairly priced/ none)