Round Barn stock has a required return of 12.00% and is expected to pay a dividend of $7.75 next year. Investors expect a growth rate of 6.45% on the dividends for the foreseeable future.

a. What is the current fair price for the stock? (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 2.20%. If investors are rational, what will be the new price for Round Barn stock? (Round your answer to 2 decimal places.)

New price $