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a) Spherecords Corp. currently pays $3.53 in dividend as of the end of this year. The corp.s dividends will grow by 5.64% each year for next 11 years, and then grow by 2.93% each year afterwards. Whats the present value of the firms stock given these information assuming that the required rate of return for the firms industry is 13.62%?

b)

What is the payback period (in annual terms) of the following cashflow stream?

Year 0: $-1,100

Year 4: $391

Year 7: $444

Year 13: $974

Year 15: $-773

Year 19: $-439