1. Pine Grove, Inc., is a thriving young company and it expects no dividends over the next 3 years because the company needs to reinvest its earnings to fund its various projects. The company will pay a $6.5 per share dividend in 4 years and will increase the dividend by 7 percent per year thereafter. If the required return on this stock is 11.5 percent, the current share price should be $_______. (Do not include the dollar sign ($). Round your answer to 2 decimal places.

2. Wonder Trees Inc. expects to pay the next dividend payment of $3.8 per share (D1). The company is expected to maintain a 4 percent growth rate forever. If the company stock currently sells for $48 per share, the required return should be ______ percent. Express in percentage without the % sign, and round it to two decimal places.