1a) Stater Bros will pay a dividend of $1.00 per share this year. You expect that this dividend will grow by 5% each year in the future. What is the current intrinsic value of a share of Watkins' stock if their market capitalization rate is 15%?

1b) Albertsons is in a supernormal growth period. Dividends are expected to increase by 12% annually for the next two years, with the growth rate then falling off to a constant 4% thereafter. The required return or market capitalization rate is 13% and the firm just paid a $2.60 annual dividend. What is the current share price?