Answer to part A is $83.37

How do you solve for Part B?

1.Nephrite is a rapidly growing firm whose stock just paid a dividend of $2.50. The dividend is projected to grow at an annual rate of 9% for 3 years, and then grow at 3% for every year after that. The required rate of return is 7%. a. (3 points) What is the expected price of Nephrite's stock after 3 years? b. (3 points) What is the expected price of Nephrite's stock today