A stock just paid an annual dividend of $2.5. The dividend is expected to grow by 10% per year for the next 4 years. What is the expected dividend in 8 years?The growth rate of dividends will then fall steadily by 2% per year, from 10% in year 4 to 2% in year 8 and stay at that level forever. The required rate of return is 12%.

What is the expected dividend in 8 years?

What is the value of the stock in 8 years?

What is the value of the stock now?