An investor is considering making an investment in the common shares of Vison Inc. Visons current dividend is $3 per share, and the company expects the annual. Dividends for the next three years to be as follows: Year 1: $4 Year 2: $6 Year 3: $7

After Year 3, the company expects the dividend to grow at an annual rate of 6%. Required:

a) If the investor requires a 15% rate of return on this investment, calculate the current price of the shares.

b) For the first year of the investment, calculate the projected return from capital appreciation and the projected return from dividends