Pharmecology just paid an annual dividend of $2.05 per share. Its a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 3.75% per year. The nominal cost of capital is 10.50%.

a. What is Pharmecologys current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current stock price $

b. What would be Pharmecologys current stock price using forecasted real dividends and a real discount rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current stock price $