Round Barn stock has a required return of $11\mathrm{.}70\%$ and is expected to pay a dividend of $$4\mathrm{.}05$ next year. Investors expect a growth rate

of $5\mathrm{.}30\%$ on the dividends for the foreseeable future.

Required:

a$.$ What is the current fair price for the stock?

Note: Round your answer to $2$ decimal places.

Current fair price

b$.$ Suppose the stock is selling at this price, but then investors revise their expectations. The new expectation for the growth rate is

$4\mathrm{.}50\%.$ If investors are rational, what will be the new price for Round Barn stock?

Note: Round your answer to $2$ decimal places.

New price