4.)The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $3.00 per share. What is the current value of one share of this stock if the required rate of return is 8.50 percent?

a.131.81

b. 134.81

c.162.96

d. 165.96

e.117.59

5.) Plush Pilots, Inc., has balance sheet equity of $6.5 million. At the same time, the income statement shows net income of $780,000. The company paid dividends of $397,800 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 29, what is the target stock price in one year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Whats its target stock price?