Montgomery Corp. has been paying dividends of $0.90 per share. Assume it has a cost of equity capital of 8.5%. Estimate the stock value per share of Montgomery Corp. using the dividend discount model (DDM) under each of the following separate assumptions:

1) The dividend will continue to stay at $0.90 per share in the future

2) The dividend will be $0.90 for the next two years and then will grow at a rate of 3.5%

(Please show your calculations)