1) You are valuing a stock. You expect the stock to pay a dividend of $2.94 in one year and that the dividends are growing at a constant rate of 3% per year. Assume an interest rate of 9%. What is the value of the stock?

2) You are valuing a stock. You expect the stock to pay a dividend of $1 in one year, $1.50 in two years, and $2 in three years. Then the stock's dividends will settle down at a growth rate of 3.8% per year. What's the value of the stock? Assume a discount rate of 7% per year. (Enter your answer in dollars with 2 decimal places.)

a) Show the main formulas and calculation steps to solve the previous question.