ABC stock is expected to pay a dividend of $5.00 per share 1 year from now. Investors expect dividends to grow 5% per year forever, and the required return on this stock is 16%

A. What is the price of the stock today?

(b) Suppose that after one year the stock pays the expected dividend, and then the company announces some unexpected news. Because of the announcement investors now expect a growth rate of 8% per year forever from this stock. How much could you sell the stock for immediately after the news is announced?

(c) What is your rate of return on a one-year investment in this stock? Put your answer here

Please answer using excel, and show the formulas!!!