7. Mertyle Inc. announced that they will pay a dividend of $4 per share at the end of this year and will increase the dividend by 5% every year to the indefinite future. Suppose the required rate of return is 12%. (1) What is the current stock price? (5 points) (2) What is the expected stock price six years from today? (5 points) If you buy the stock today and sell it a year later, (3) a. Calculate your selling price. (2 points) b. Calculate your dividend yield. (1 point) c. Calculate your capital gains yield. (1 point) d. Calculate your total return. (1 point)