Q1: imagine a firm whose dividends have growing at a rate of 13% per year, which is expected to be the stable growth rate forever. The dividend just paid (D0) was $3.81 and the required rate of return is 13%. What is the dividend paid in year 2? Find D2

Round your answer to two decimals

Q2:

Calculate the Value of the Stock with Constant Growth

ToMuchDisney Incorporated has a required rate of return of 13%.

The last dividend was at 7.3. ("last" or "just paid" means it is in the past)

The stock is expected to grow at a 2% constant rate.

What is the value of the firm's stock?

Use (D / (r-g))

Include two decimals in your answer