Question $5$

$5$ pts

Suppose a firm just paid a dividend of $$1\mathrm{.}00.$ You expect that the firm will grow at $30\%$ next year, $10\%$ the following year, and at a constant rate of $3\%$ thereafter. The required return on this firm's equity is $12\%.$ What is the price of the stock?

Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal $($e$.$g$.,$ for $$12,345\mathrm{.}67,$ type $12345\mathrm{.}67).$

Question $6$

$5$ pts

The present value of a $14-$year annuity is $$10,400.$ The discount rate is $6\%.$ What is the future value of this annuity at the end of year $14?$

Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal $($e$.$g$.,$ for $$12,345\mathrm{.}67,$ type $12345\mathrm{.}67).$