4. [20] Truth, Inc. recently paid $1.00 as an annual dividend.(i.e., D0=$1.00 ) Dividens at T=1,2,3 are expected to be $1.50,$2.00,$4.00 respectively. After that future dividends are projected at super-nomal growth rate of 30% over 8 years. (t3 2 t11). After that, the dividend is expected to stabilize at a growth rate of by 4%. Assume that your desired rate of return is 8% 1. What is the dividend at t12. 2. What is the ex-dividend price of the stock at t=11 ? ( Note that P(t=11, ex-div) is ths present value of [D(t=12)D(t= infinity )]] 3. What is the PV(at t=2) of [D3 D11]. 4. What is the ex-dividend price of the stock at t=0 ? [(Note that P(att=0) is the PV of future dividends from that time on, i.e., PV of D1 to D(). So, PV(D1 D()) =PV(D12D2)+PV(D3D11)+PV((D122D())]