In practice a common way to value a share of stock when a company pays dividen

In practice a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so
then find the %u201Cterminal%u201D stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.35. The dividends are
expected to grow at 13 percent over the next five years. In five years the estimated payout ratio is 35 percent and the benchmark PE ratio is
25.

What is the target stock price in five years? (Do not round intermediate calculations and round your final
answer to 2 decimal places. (e.g. 32.16))

What is the stock price today assuming a required return of 11.5 percent on this stock? (Do not round
intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16))