1) You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $6.30 and that dividends will grow at a rate of 8.0% per year thereafter. If you would want an annual return of 12.0% to invest in this stock, what is the most you should pay for the stock now?

2)Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.70. You believe that dividends will grow at a rate of 20.0% per year for years one and two, 11.0% per year for years three and four, and then at a rate of 10.0% per year thereafter. If you expect an annual rate of return of 22.0% on this investment, what is the most you would pay for the stock now?