AAA Corp. recently paid an annual $15 per share dividend. From the recently

approved patent, this companys net profits will grow at 20% in the next 2 years, and

at 5% in the third year and beyond due to the expiration of the patent. The required return

to this companys shareholders is at 10%.

(1) Calculate the intrinsic value of Stony AAAs stock per share.

(2) Calculate the dividend yield and the capital gains yield for the first year (t=0).

Round up to the first decimal point if your answer is expressed in percentage (%)

(or up to the third decimal point if written infraction).