1. a) You are thinking about buying a stock and holding it for 3 years. You expect that the stock will pay a dividend of $1.75 in 1 year, $2.18 in two years, and $4.19 in three years. You expect to sell for $92.72 in 3 years. If the required return is 14.87%, what is the value of the stock.

b )The price of a stock is $123.48 and the stock is currently in a constant dividend growth phase. Dividends are expected to grow at a rate of 3.68% forever. What will be the stocks price be in 4 years?