help solve 9&10:

The stock of Robotic Atlanta Inc. is trading at $34.54 per share. In the past, the firm has paid a constant dividend of \$5.37 per share and it has just paid an annual dividend (i.e., D0 =5.37). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 9.8% forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? Your Answer: Answer Question 10 ( 5 points) Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 6 years. At the end of year 6 , the company will pay a $3 dividend. The company will pay a $1.97 per share dividend at the end of year 7 and thereafter it will increase the dividends by 5% per year forever. If the required rate of return on this stock is 9%, what is the current (today's) share price? Show your answer to the nearest $.01. Do not use the $ or , signs in your