1a.

Van Buren, Inc., currently pays $2.05 per share in dividends on its common stock. Dividends are expected to grow at 6.00% per year forever. If you require a 15.00% rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid. Answer format: Currency: Round to: 2 decimal places.

1b. Suppose that the Atlanta Falcons decide to fund part of their new stadium with 21.00-year zero coupon bonds. The team wants to raise $237.00 million with this bond issue. If investors seek a return of 6.17% on this investment, what face value will Mr. Blank have to put on the bonds? (express answer in terms of millions, so 1,000,000 would be 1.0) Answer format: Currency: Round to: 2 decimal places.