2. Brickhouse is expected to pay annual dividends of $1.90, $2.00, and $2.10 over the next three years, respectively. After that, the dividend is expected to grow at 3% annually. What is the intrinsic value of this stock at a required return of 16 percent?

3. Doolittle Co. is expected to pay a dividend of $1.5 next year. Doolittle is expected to pay 30% of its earnings as dividends and will have an ROE of 8% until the fourth year. After that, its ROE is expected to decrease to 4% and the dividend payout ratio will increase to 40%. Applying the cost of equity of 10% and the multistage growth model, compute the intrinsic price of Doolittle.