Answer both questions please!

1) Agilent Technologies (TKR-"A") does not currently pay a dividend. However, their earnings have been growing at a very high rate. Thus, they are expected to begin paying a dividend, starting 5 years from today. Expectations are that the first dividend will be $0.50 per share. The dividend is then expected to grow at 35% per year for 7 years, and at the end of that super-normal growth period, the stock will enter a slower growth perpetuity phase of 8% per year. The required return on Agilent stock is 12%, what should be their current stock price? (write answer below #2) Merck just announced a new cancer therapy approval (by the FDA). Given this news, their expected growth rate over the next 5 years just went up to 15%. Their previous dividend (just paid so you missed it) was $2. Your expectation of their eventual normal growth rate (after the next 5 years of superior growth) is 6%. Your required return is 12%, what should you be willing to pay for their stock? (write answer on back page) 2)