ABC Company just paid a dividend (D_o) of $1.10. Due to a new product being introduced to the market, ABC expects to achieve a supernormal annual growth rate of 15% for the next four years. After that, growth is expected to return to the long-run constant rate of 8%. Investor require a 12% return on this stock.

Required

A) Calculate ABC's expected dividends for each of the next 4 years. (Round each dividend to two decimal places)

B) Calculate the expected price of the stock at the end of four years 

C) What is this stocks current value? Use financial calculator's CF/NPV functions to calculate the value. $37.84

D) What are the total return, expected dividend yield, and capital gains yield (in this order) for the first year? (reminder: total return should equal market return)

E) What are the total return, capital gains yield, and expected dividend yield (in this order) for the fifth year?