1. Terminal Emulator Co. pays a constant $17.9 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 8.7 percent, what is the current share price?
2. Screenshot, Inc., just paid a dividend of $4.25 per share on its stock. The dividends are expected to grow at a constant rate of 3.8 percent per year, indefinitely. Assume investors require an 13.6 percent return on this stock. What is the expected price of this stock in 12 years?