1. A firm does not pay a dividend. It is expected to pay its first dividend of $0.42 per share in two years. This dividend will grow at 10 percent indefinitely. Use an 11.5 percent discount rate. Compute the value of this stock. (Round your answer to 2 decimal places.)
Stock value = $
2. Waller Co. (WAG) paid a $0.145 dividend per share in 2006, which grew to $0.309 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 14.5 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)
Stock value = $