10. A stock isexpected to payan annual dividend of $4.03 per sharein one year. The dividends are expected to grow at a rate of 2% per year forever. The required rate of return for this stock is 15%

Please answer both parts below.

Part A

What is the current stock price?

Part B

The company now announces that it is undergoing a restructuring operation and it will suspend it's next two annual dividends (i.e. it will pay investors nothing) and pay out a new, larger dividend of $4.538 per shareat the end of three years, which will then continue to grow by 2% per year as before. If the market believes this estimate, what is the new current stock price?