A-3 (10 Marks)

Your Company (YC) has been growing at a rate of 10% per year recently. This same growth rate is expected to last for another two years and then drop to a constant growth rate of 7% thereafter. The last dividend declared and paid was $2.00 and the required rate of return is 9%. (Timeline required.) Required: (***Carry all decimal places. Round final answers to 2 decimal places.) (1) What is the price of YC shares today? (2) What is the share price (estimated) at the end of the first year? (3) What dividend yield, capital gains yield, and total yield, should an investor in this company expect for the first year?