1. Zero growth: Knight Supply Corp. has not grown for the past several years and expects this lack of of growth to continue. The firm last paid a dividend of $3.56. If you require a rate of return of 13 percent, what is the current stock price?
2. Constant growth: Nyeil, Inc., is a consumer products firm growing at a constant rate of 6.5 percent. The firm's last dividend was $3.36. If the required rate of return is 18 percent, what is the market value of this stock?