1. Consider the stock of Elixir Drug Company, which has a new back-rub ointment and is enjoying rapid growth. The dividend for a share of stock a year from today will be $1.15. During the next four years, the dividend will grow at 15 percent per year (g1
15%). After that, growth (g2) will be equal to 10 percent per year. Can you calculate the present value of the stock if the required return (r) is 15 percent?