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Analysts expect TPHB, Inc. to have an annual growth rate in its dividend of 125% over each of the next three years and forecast its

  1. Analysts expect TPHB, Inc. to have an annual growth rate in its dividend of 125% over each of the next three years and forecast its growth rate to be 5.5% annually after that. TPHB will pay its first dividend today in the amount of $0.60 per share. The required rate of return on TPHB stock is 13.5%.
    1. What should TPHBs stock price be today?
    2. What would you expect the stock price to be two years from today?
    3. What would you expect the stock price to be five years from today?

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