Problem $8-33$ Stock Valuation $[$LO$1]$

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out in equal quarterly installments to its shareholders.

a$.$ Suppose a company currently pays an annual dividend of $$4\mathrm{.}80$ on its common stock in a single annual installment, and management plans on raising this dividend by $5$ percent per year indefinitely. If the required return on this stock is $10$ percent, what is the current share price? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Now suppose the company in $($a$)$ actually pays its annual dividend in equal quarterly installments; thus, the company has just paid a dividend of $$1\mathrm{.}20$ per share, as it has for the previous three quarters. What is your value for the current share price now? $($Hint$.$ Find the equivalent annual end$-$of$-$year dividend for each year.$)($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.

$\backslash$table$[[\backslash$table$[[$a$.$ Current share$],[$price$]],$$$,177\mathrm{.}37$