Simtek currently pays a $3.5 dividend (D₀) per share. Next years dividend is expected to be $3.75 per share. After next year, dividends are expected to increase at a 11 percent annual rate for 3 years and a 8 percent annual rate thereafter. Use Table II to answer the questions. Do not round intermediate calculations. Round your answers to the nearest cent.

1. What is the current value of a share of Simtek stock to an investor who requires a 13 percent return on his or her investment? $
2. If the dividend in year 1 is expected to be $3.75 and the growth rate over the following 3 years is expected to be only 9 percent and then 8 percent thereafter, what will the new stock price be? $