3.(a): The dividends that a firm pays to its stockholders are expected to grow at 4.5% per quarter for the next six quarters. From t=6 onwards, i.e. from the beginning of the seventh quarter the growth rate in dividends will drop to 3% per quarter, and the firm expects to be able to sustain it at this level. Assuming that the market capitalization rate is 3.6% per quarter, work out the price of the firms stock assuming that the dividend expected to be paid at t=1, i.e., at the end of the first quarter is $3.00.

(b): Rework your answer assuming that g_H, the rate at which the dividends are expected to grow for the first six quarters is 3.6% per quarter.