a) What should be the share price at the end of year 3.

b) what is the price today?

Thank you so much.

The answers to a and b are 39.33 and 35.85.

A stock will pay a dividend of $1 in 1 year from now . then the dividend will grow by 63 annually Then after the payment of the dividend in year 4 . the dividend will growth at 3% annually for ever The expected return is 69 6 . What should be the share price at the end of year 3