a. The next dividend payment by a Corporation will be $4.05 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $52 per share, what is the required rate of return?

b. Corporation just announced that it will pay an annual dividend of $12 per share starting 9 years from now. The market rate of return is 6.5 percent. What is the cost of one share of the company today?