Assume that the average firm in your companys industry is expected to grow at a

constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as

the average firm in the industry and just paid a dividend D0 of $1. You expect that the

growth rate of dividends will be 50% during the first year g0,1 50% and 25% during

the second year g1,2 25% . After Year 2, dividend growth will be constant at 6%. What

is the required rate of return on your companys stock? What is the estimated value per

share of your firms stock?

PLEASE EXPLAIN WITH SHOWING THE STEPS TOO!