14. (20 points) Kirksville Inc. is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share dividend in Year 7 (no dividend payment is expected up to Year 6) and increase the dividend by 2.2 percent per year thereafter. The required return is 16 percent.

a. (10 points) What is the current price of the stock?

b. (5 points) What is the expected price three years from today?

c. (5 points) What is the expected price 18 years from today?