11. Nat-T-Cat Industries just went public. As a growing firm, it is not expected to pay a dividend for the first five years. After that, investors expect Nat-T-Cat to pay an annual dividend $1.00 per share (i.e., D6 = 1.00), with no growth. If the required return is 10%, what is the current stock price?

17. The projected earnings per share for Risky Ventures, Inc. is $3.50. The average PE ratio for the industry composed of Risky Ventures closest competitors is 21. After careful analysis, you decide that Risky Ventures is a little more risky than average, so you decide a PE ratio of 23 better reflects the markets perception of the firm. Estimate the current price of the firms stock.