1. The next dividend payment by Firm C will be $1.97 per share. The dividends are anticipated to maintain a 2.6 percent growth rate, forever. If the stock currently sells for $35.17 per share, what is the required return? Express your answer as a percentage and round to four decimal places (e.g., 15.83% = 0.1583).
2. Firm B paid a dividend of $2.36 per share this morning. Dividends are expected to grow at an annual rate of 10% per year for the next 3 years. After that, dividends will grow at 1.1% per year forever. What is the amount of the dividend that will be paid 7 years from now? Round your answer to the nearest cent.