c$.$ Suppose Hilary just bought stock in SHERT Co$.,$ a renewable energy startup, and that

Hilary estimates there will be a dividend of $$9$ per share, paid annually, forever. What is

the value of the stock if the interest rate is $7$ percent $($using the discount dividend model$).$

d$.$ Now suppose Hilary estimates that there will be a dividend of $$9$ per share paid out next

year, and that the dividend is expected to grow at a constant rate of $2$ percent per year. If

the required rate of return on the stock is $7$ percent, then using the discount dividend

model, compute the value of the stock $($i$.$e$.$ price of a stock$).$