In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the terminal stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.65. The dividends are expected to grow at 19 percent over the next five years. In five years, the estimated payout ratio is 30 percent and the benchmark PE ratio is 31.

What is the target stock price in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Target stock price

$

What is the stock price today assuming a required return of 10.5 percent on this stock? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Stock price

$

Thirsty Cactus Corp. just paid a dividend of $2.50 per share. The dividends are expected to grow at 17 percent for the next eight years and then level off to a growth rate of 7 percent indefinitely. If the required return is 13 percent, what is the price of the stock today? (Round your answer to 2 decimal places. (e.g., 32.16))

Stock price

$