For the next 4 years, the annual dividends of a stock are expected to be $ 2, 2, 3 and 4 (all cash flows are at the end of year) and the stock price is expected to be 60 at the end of 4 years. If the firm has a 9 percent cost of equity, what should be the value of the stock?

Group of answer choices

43.49

46.05

48.61

51.17

56.28

Facebook Corporation (FB) has been growing at a rate of 36% per year in recent years. This same supernormal growth rate is expected to last for another 4 years, during which it will not pay dividend. It will start paying a dividend of $5 a share in 5th year. After this, earnings and dividends are expected to grow at a 5 percent annual rate indefinitely. Investors currently require a rate of return of 9 percent. What should be the current market price per share of its stock?

Group of answer choices

97.4

84.12

75.26

88.55

79.69