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1 - The risk - free rate is 3 . 3 3 % and the market risk premium is 5 . 2 5 % .

1-The risk-free rate is 3.33% and the market risk premium is 5.25%. A stock with a \beta of 1.29 just paid a dividend of $2.11. The dividend is expected to grow at 23.98% for three years and then grow at 4.28% forever. What is the value of the stock?
2-The risk-free rate is 2.24% and the market risk premium is 7.92%. A stock with a \beta of 0.89 just paid a dividend of $2.66. The dividend is expected to grow at 21.57% for five years and then grow at 4.83% forever. What is the value of the stock?

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