QUESTION 7 "Company A has a current stock price of $100 and is expected to pay a $7 dividend in one year. The equity cost of capital is 5%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

QUESTION 8 "Company B is expected to pay dividends of $1 every 6 months for the next 10 years. If the current price of Company B stock is $20, and Company B's equity cost of capital is 15%. What price would you expect the stock to sell for at the end of 10 years? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."