1. A stock is expected to pay five dividends of $1.5 and you forecast you can sell it just after the fifth dividend for $62.5. If the required return on this stock is 14%, what is its intrinsic value?
2. A firm is expected to make four dividend payments of 2.60. Then dividends are expected to stop for 7 periods. At that point the stock has a forecasted EPsS of $17.20 and a PE ratio of 16.5. If the required return of the stock is 15%, what is its intrinsic value?