Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances

during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out in equal

quarterly installments to its shareholders.

a$.$ Suppose a company currently pays an annual dividend of $$4\mathrm{.}40$ on its common stock in a single annual installment, and

management plans on raising this dividend by $6\mathrm{.}75$ percent per year, indefinitely. If the required return on this stock is $10$ percent,

what is the current share price?

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

b$.$ Now suppose the company in part $($a$)$ actually pays its annual dividend in equal quarterly installments; thus, the company has just

paid a dividend of $$1\mathrm{.}10$ per share, as it has for the previous three quarters. What is your value for the current share price now? $($Hint:

Find the equivalent annual end$-$of$-$year dividend for each year.$)$