1. Firm C just paid a dividend of $1. The dividend will grow by 6% for two years and 8% for another two years. After that, the dividend will be constant forever. How much would you like to pay for this stock if your required rate of return is 10%? Draw Timelines with Growth Rate Indicated

2. Firm D is expected to pay $1 dividend in one year. This $1 dividend will keep constant for another three years and then grow by 5% forever. How much would you like to pay for this stock if your required rate of return is 10%? Draw Timelines with Growth Rate Indicated