Part II (25 points) 1. (3 points) Red Rock, Inc. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year, forever. If the investors require a rate of return of 9.25%, what is the stock's current price? Round to the nearest $0.01. 2. (3 points) ABC Inc. will pay a $4 dividend per share per year, forever. If the investors required rate of return is 16%, what is the stock's current price? Round to the nearest $0.01