Use the following data to answer Q26 and Q27: Beachballs, Inc., expects abnormally high earnings for the next 3 years due to the forecast of unusually hot summer. After the 3 year period, their growth will level off to its normal rate of 6%. Dividendns and earnings are expected to grow at 20% for years 1 and 2, and 15% in year 3. The last dividend paid was $ 1.00. 26.

If Sarah Paulsen requires a 10% return on Beachballs, Inc., the price she is willingly to pay for the stock is closest to:

If Sarah is planning on selling Beachballs, Inc., after one year, the price will be closest to: