1. The next dividend payment by Halestorm, Inc., will be $5.72 per share. The dividends are anticipated to maintain a growth rate of 1.38 percent forever. If the stock currently sells for $3.39 per share, what is the expected capital gains yield?
2. Lohn Corporation is expected to pay the following dividends over the next four years: $7.48, $3.6, $6.1, and $6.07. Afterward, the company pledges to maintain a constant 4.95 percent growth rate in dividends forever. If the required return on the stock is 7.06 percent, what is the current share price?