A company has an odd dividend policy. The company will pay a dividend of $3 per share next year and has announced that it will increase the dividend by $5 per share for each of the subsequent four years and then maintains a constant 2% growth rate. If you require a return of 8 percent on the companys stock.

A. How much will you pay for a share today?

B. At the price you are willing to pay for, what is the dividend yield in the first year?