1. Dat Inc. is not paying any dividends now. However, NU Inc. is planning to start paying annual dividends 3 years from now. The first dividend will be $1.4. The growth rate will be 2.0%. What is the stock price in 1 year if the discount rate is 10%?
2. Mary Inc. just paid a dividend of $3.2. They will continue paying the same dividend for 5 more years and then close down. When closing down in year 5, an extra dividend of $29 will be paid to the investor. What is the current stock price if the discount is 8.5%?