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\mathrm{.}31.$ The dividends

are expected to grow at $16$ percent over the next five years. In five years, the estimated payout ratio will be $30$ percent and a

benchmark PE will be $19.$ The required return is $14$ percent.

a$.$ What is the target stock price in five years?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the stock price today?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

a$.$ Target price in five years

b$.$ Stock price today