Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 8 yearsbecause the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.50 per share 9 years from todayand will increase the dividend by 5.75 percent per year thereafter.

If the required return on this stock is 13.75 percent, what is the current share price?

BiarritzCorp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 7.3 percent thereafter.

If the required return is 15 percent and the company just paid a dividend of $3.40, what is the current share price?