Applied Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at 18% a year for the next years, 15% a year for the years 2 and 3, 12% for year 4, and at a constant rate of 6% per year thereafter. Companies in this risk class have a 16% required rate of return. What is the dividend at the end of year 3?

What will be the price of the stock at the end of year 4?

What is the current market value of the ASIs stock?