1. Hamilton Landscaping's dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1 to Year 2, and drop to a constant 5% for Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.50 and its stock has a required return of 11%.
2. A company has a beta of 1.2, the yield on the 180m day T-bill is 2% and the market's return is 15%.
What should be the current price of the company's stock if the post recent dividend paid is $1.50 and the company has a projected growth of 12% into the foreseeable future?