1. What is the price of a stock expected to be in 5 years if the stock is expected to pay a dividend every year forever, the expected return for the stock is 8.16 percent per year, the next dividend is expected in 1 year, the next dividend is expected to be 7.63 dollars, and all subsequent dividends are expected to grow by 5.1 percent per year? (please show what formulas were used)
2. Oxygen Optimization stock is currently priced at 73.92 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 3.15 percent per year forever starting after the next dividend is paid in 1 year. The expected return on the stock is 12.76 percent per year. What is the dividend expected to be in 8 years?