You are valuing a stock that just paid a $1.39 dividend. They will continue to pay dividends annually. The dividends will grow by 17% per year for the next 2 years. After 2 years of 17% growth, the dividends will grow by 4%, starting in year 3 and continuing into perpetuity. The appropriate discount rate for the stock is 11.1%.

a. What would be the value of this stock today? Round to the nearest cent.

b. What would be the expected value of this stock at the end of the second year? Assume that they will have just paid the dividend at the end of the second year. Round to the nearest cent.