10. A company most recently paid a dividend of $1.50. The dividends will increase by 2% per year indefinitely. The required return on the stock is 14%.

Determine each of the figures below and explain how you arrived at your answers.

Stock price today, dividend yield and capital gains yield this year.

Stock price in 5 years, dividend yield and capital gains yield that year.

11. A company plans to pay a dividend of $2 in 3 years. After that, dividends will grow by 35% for 2 years. After that, dividends will grow by 5% indefinitely. The required return is 11%. Determine each of the figures below and explain how you arrived at your answers.

Stock price today, dividend yield and capital gains yield this year.

Stock price in 4 years, dividend yield and capital gains yield that year.

Stock price in 15 years, dividend yield and capital gains yield that year