1. Value of Growth Opportunities A firm has projected annual earnings per share of $5.00 and a dividend payout ratio of 65%. The firm's required return is 18% and dividends and earnings are expected to grow at 3% per year indefinitely. For this firm the present value of its growth opportunities is ________.

$49.44

$52.73

$12.22

$37.22

2. Multistage Growth A firm projects that dividends will grow at a rate of 13% per year for four years and then will grow at a rate of 6% per year forever. The stock's required return is 15% and the last annual dividend paid was $1.30. The most an investor should be willing to pay for this stock today is ______. (Watch your rounding, carry out dividends to four or more decimal places.)

$17.31

$19.25

$23.92

$22.59