Newell Corporation, a manufacturer of do$-$it$-$yourself hardware and housewares, reported earnings per share of $$2\mathrm{.}10$ in $1993,$ on which it paid dividends per share of $$0\mathrm{.}69.$ Earnings are expected to grow $15\%$ a year from $1994$ to $1998,$ during which period the dividend payout ratio is expected to remain unchanged. After $1998,$ the earnings growth rate is expected to drop to a stable $6\%,$ and the payout ratio is expected to increase to $65\%$ of earnings. The firm has a beta of $1\mathrm{.}40$ currently, and it is expected to have a beta of $1\mathrm{.}10$ after $1998.$ The treasury bond rate is $6\mathrm{.}25\%.$ a$.$ What is the expected price of the stock at the end of $1998?$ b$.$ What is the value of the stock, using the two$-$stage dividend discount model?