Van Buren, Inc., currently pays $2.08 per share in dividends on its common stock. Dividends are expected to grow at 6.00% per year forever. If you require a 12.00% rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid.

After finishing your first finance class, you decide to start your own investment plan. Your first stock to purchase is Walgreens (WAL). After careful analysis, you predict the following payoffs for owning Walgreens stock over the next four years:

YEAR	1	2	3	4
Dividends	$1.00	$1.25	$1.50	$1.50
Selling Price				$50.00

If you require a 20.00% return on your investment (a little high), what price are you willing to pay today for a share of Walgreens?