Assume today is time 0 and consider a conpawy's stock which will pay a dividend D1 (to be paid at time 1) of $2.50 per share of common stock, followed by a dividend of $1.00, and followed by two dividends which grow at 5% each (for period 33 and 40, after which dividends will grow at 6% indefinitely.

a) if this company faces an equity discount rate of 9% throughout, what would be the value of a share of common stock Po today (at time 0)

b) what would you expect there price to be at time 3 (assume that the dividend at time 3 has been paid)

c) what would you expect the price to be 10 years from now?

d) what are the dividend yield;d and the capital yield for the second period