1. Use the Dividend Growth Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $14.06 per share in one year. ELO shares are currently trading for $174.23 on the NYSE, and the expected annual rate of return for ELO shares is 15.45%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).

2. Use the Dividend Growth Model to compute the expected price of a stock today. Each share is expected to pay a dividend of $5.32 in one year. Investors' annual required rate of return is 19.5%, and the expected growth rate of the dividend is 4.1% per annum. Answer to the nearest penny.