How to do 18 and 19?

for Scrooge Gloves, Inc. are expected to grow at a rate of 32% for the next 2 years. Following the first wo years, the growth rate is expected to drop to a sustainable 4% per year indefinitely. The most recent dividend was $0.75 and the required rate of return is 9.0%. The current value of the stock is closest to: a. $12.45 b $24.90 $27.80 19An analyst wants to value a firm with the following characteristics: Last year the firm paid a dividend of $4.00 per share. Expectations are that the firm can increase earnings and dividends at the rate of 25% for the next five years, but after that competitive forces will force the growth rate down to 6% for the foreseeable future. What is the best estimate of the stock's value if the required rate of return is 12%? a. $145.67 b. $165.45 c. $150.52