A stock just paid an annual dividend of $2.9. The dividend is expected to grow by 7% per year for the next 4 years. The growth rate of dividends will then fall steadily by 0.75% per year, from 7% in year 4 to 4% 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 expected stock price in 8 years?

What should be the current stock price?

**Please show formulas.