Firm ABC is expected to pay $2 dividend in one year. This $2 dividend will keep constant for another three years and then grow by 5.8% for three years. After that, the dividend will keep constant again. How much would you like to pay for this stock if your required rate of return is 6%?

Firm JFK is expected to pay $2.8 dividend in one year. This $2.8 dividend will keep constant for another four years and then grow by 4.2% for three years. After that, the dividend will grow by 3.9% forever. How much would you like to pay for this stock if your required rate of return is 7.6%?