(a) Company A currently pays no dividends. It expects to have a dividend payout ratio of 20% two years from now. Its earnings two years from now is expected to be $10 per share. Thereafter, dividends are expected to grow by 5% a year for 3 years. After Year 5 , dividend growth will slow to a rate of 2% per annum forever. Required rate of return on the stock is 12%. What is its current stock price? Time line: Year 1: No dividends; Years 2-5: Dividends; After Year 5: Constant growth (15 marks) (b) The company's earnings in Year 5 is expected to be $2.50 per share. Determine the PVGO in Year 4 and comment on your results. Calculate the earnings yield and comment on its significance. (15 marks)