Common stock value$-$Variable growth Lawrence Industries' most recent annual dividend was $$1\mathrm{.}79$ per share $(D_0=$$$1\mathrm{.}79),$ and the firm's required return is $11\%.$ Find the market value of Lawrence's shares when dividends are expected to grow at $10\%$ annually for $3$ years, followed by a $5\%$ constant annual growth rate in years $4$ to infinity.

The market value of Lawrence's shares is $

$($Round to the nearest cent.$)$

Free cash flow valuation You are evaluating the potential purchase of a small business with no debt or preferred stock that is currently generating $$42,600$ of free cash flow $)=($$$42,600.$ On the basis of a review of similar$-$risk investment opportunites, you must earn a$(n)19\%$ rate of return on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using several possible assumptions about the growth rate of cash flows.

a$.$ What is the firm's value if cash flows are expected to grow at an annual rate of $0\%$ from now to infinity?

b$.$ What is the firm's value if cash flows are expected to grow at a constant annual rate of $8\%$ from now to infinity?

c$.$ What is the firm's value if cash flows are expected to grow at an annual rate of $11\%$ for the first $2$ years, followed by a constant annual rate of $8\%$ from year $3$ to infinity?

a$.$ The firm's value, if cash flows are expected to grow at an annual rate of $0\%$ from now to infinity, is $

$($Round to the nearest cent.$)$