A firm pays a current dividend of $1.25. The firm's earnings are $3.20 per share and the firm's ROE is 9.1%. This firm has a required return on equity of 11.9%. Compute the price of this share of common stock.

Then A firm is expected to have super high growth during the next three years because of a patent. The board expects to pay a $2.35 dividend exactly one year from today and those dividends should double during the subsequent two-year period. Normal growth rates apply after the high growth period of 4.1%. This firm has a required return on equity of 13.4%. Compute the price of this share of common stock.