1. A firm recently paid a $0.85 annual dividend. The dividend is expected to increase by 12 percent in each of the next four years. In the fourth year, the stock price is expected to be $60. If the required return for this stock is 14.50 percent, what is its current value? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

2. Locate the most recent 2017 financials for Kimberly-Clark and review the notes related to the firm’s financials. The $2.3 billion of cash returns to shareholders in 2017 was a significant event. What effect will this have on future operating profitability, return on common equity, and earnings-per-share growth?