1. YGTB, Inc., currently has an EPS of $1.40 and an earnings growth rate of 6 percent. If the benchmark PE ratio is 19, what is the target share price five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
2. The Merriweather Co. just announced that it will pay a dividend next year of $1.60 and is establishing a policy whereby the dividend will increase by 3% annually thereafter. How much will one share be worth five years from now if the required rate of return is 12%?