1. Zizizi Inc has never paid dividends. They plan to pay their first dividend of $0.15 per share in exactly a year. If investors expect the dividend to perpetually grow by 18.4% per year, and require a 20% return on investment, what price are investors willing to pay for a Zizizi share? Enter your answer in dollars to 2 decimal places.

2. Refer to the previous question: comment on the assumptions made, are they likely to remain the same over time? why or why not? What impact would this have on the share price? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).