Fey Fashions expects the following dividend pattern over the next seven years:

Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
$1.30	$1.43	$1.57	$1.73	$1.90	$2.09	$2.30

The company will then have a constant dividend of

$2.60

forever. What is the stock's price today if an investor wants to earn

a.

15%?

b.

20%?