Chris and Paul are evaluating the stock price of a company at the same time.

Chris forecasts that the dividend will be$1 this year, the growth rate of dividend will be 20% per year.

However, Paul forecasts that the dividend will be $1 this year,

but the growth rate of dividend will be 30% next year, and 25% in the third year.

After that dividends will increase at a rate of 10% per year indefinitely. Suppose the cost of capital is 25%.

1-a) What is the estimated stock price of Chris?

1-b) What is the estimated stock price of Paul?