1.Keyes Fiber Inc. expects to pay $92 million in dividends and repurchase $100 million of its shares next year (Year 1). Both dividends and share repurchases are expected to increase6% in Year 2 and 7% in Year 3. Keyes Fiber is expected to have a market capitalization of $7 billion by the end of Year 4, and its Cost of Equity is 8.5%. A) Draw a timeline. B) Calculate what its market capitalization should be now.

Based on your answer to Q1 and given Keyes Fiber's 200 million shares outstanding, what is your estimate of where the stock should trade now on a per share basis?