1. Thyrel Inc paid an annual dividend last year of $10 per share. The company follows a policy to raise dividends each year by 4%. The required rate of return for this investment is 10%. The company will be in business for 7 years and not have a liquidating dividend. What is the price of this stock today?

2. You want to invest in a stock that pays $14 annual cash dividend for the next 12 years. At the end of the 12 years you will sell the stock for $80. If you want to earn 19% on this investment what is a fair price for this stock today?