) An analyst has gathered the following market forecasts and information to assist in his examination of the value of XYZ Inc.:

XYZs cost of capital: 10 percent

Last years earnings: -$2.25 / share

Current earnings: $0.10 / share

Current stock price: $35.86 / share

Current Debt to Equity ratio: 2

Current dividend payout ratio: 90 percent

Current profit margin: 8.4 percent

Next years forecasted earnings: $1.00 / share

Forecasted earnings in year 2: $1.50 / share

Forecasted earnings in year 3: $2.00 / share

Market consensus of the stock price target in 4 years: $47.70 / share

As his new intern, he has asked you to investigate and provide the growth rates over time that the market is expecting for the firm.