a. A company currently pays a dividend of $1.25 per share, D0 = 1.25. It is estimated that the company's dividend will grow at a rate of 15% percent per year for the next 2 years, then the dividend will grow at a constant rate of 6% thereafter. The company's stock has a beta equal to 1, the risk-free rate is 3 percent, and the market risk premium is 5 percent. What is your estimate is the stock's current price? Round your answer to the nearest cent.

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b. Boehm Incorporated is expected to pay a $1.40 per share dividend at the end of this year (i.e., D1 = $1.40). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 16%. What is the value per share of the company's stock? Round your answer to the nearest cent.

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