You expect a common stock to pay fixed dividends of $15 per year for the next 10 years. You also expect the price of this stock in year 10 to be $100.

1) This stock is moderately risky and you require a rate of return of k = 0.15 from this stock. This means you are willing to pay______________dollars for it today.

2) This stock is somewhat risky and you require a rate of return of k = 0.25 from this stock. According to the Gordon formula, you are willing to pay ___________________ dollars for it today.