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 $1.36. The dividends are expected to grow at 13% over the next five years. In five years, the estimated payout ratio is 40% and the benchmark PE ratio is 19. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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

b. What is the stock price today assuming a required return of 11% on this stock?