2. Atlantic Industries just paid a dividend of $2.5 per common share. The dividend is expected to grow at a rate of 13% per year for the next 2 years and then to level off to 9% per year forever. You think the appropriate discount rate is 12% per year. Find the present value of the stock. Round intermediate answers to four decimals and your final answer to two decimals.

3. Your firm will upgrade its production capacity over the course of the next several years, which will affect its ability to pay common share dividends. Specifically, your company will pay a dividend every other year for the next six years. Your firm plans to pay a dividend of $5 two years from today. The dividend in year four is expected to be 5% greater than the dividend paid in year two. The dividend in year six is expected to be 25% greater than the dividend paid in year four. Dividends are expected to grow at a constant 6% rate thereafter. Find the value of the stock today if investors require a 20% rate of return. Round intermediate steps to four decimals. Round your final answer to two decimals. Do not use the dollar sign when entering your response.