1. Ivanhoe, Inc., management expects to pay no dividends for the next six years. It has projected a growth rate of 25 percent for the next seven years. After seven years, the firm will grow at a constant rate of 5 percent. Its first dividend, to be paid in year 7, will be $3.61. If the required rate of return is 17 percent, what is the stock worth today? *(Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)*

2. Cullumber Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the dividend growth rate to be constant at 7 percent. If the required rate of return is 21.00 percent, what is the current value of the stock? *(Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)Get Finance homework help today*