1. Lollipop Pharmacetuicals Inc's current stock price is $20, and the company expects to pay a dividends of $2 by the end of this year. If the required rate of return for the company is 15%, what is the expected capital gains for year 1?
2. What is the current price of a stock that is under going a rapid dividends growth of 30% for the next two years, and dividends will grow at 6% thereafter. If the last dividend paid was $1, and the required rate of the firm was 10%?