5 Global Coms Company's (GCC) latest annual divi- dend of 1.25 a share was paid yesterday and main- tained its historic 7 per cent annual rate of growth. You plan to purchase the stock today because you believe that the dividend growth rate will increase to 8 per cent for the next three years and the selling price of the stock will be 40 per share at the end of that time. (a) How much should you be willing to pay for the GCC stock if you require a 12 per cent return? (b) What is the maximum price you should be willing to pay for the GCC stock if you believe that the 8 per cent growth rate can be main- tained indefinitely and you require a 12 per cent! return? If the 8 per cent rate of growth is achieved, what! will the price be at the end of Year 3, assuming the conditions in Part b? (c)