Better mousetraps has come out with an improved product and the world is beating a path to its door. As a result, the company projects a 20% growth for 4 years. By then the other firms will copy its technology and drive down profit margins and the sustainable growth rate will fall to 5%. The most recent annual dividend was $1 per share.

1. What are the expected dividends for the next 5 years?
2. What is the expected stock price 4 years from now? The discount rate is 10%
3. What is the stock price today?
4. What is the current dividend yield?
5. What is the expected return to an investor who buys and sells the stock in 1 year?
6. What is the before tax expected rate of return?
7. After tax expected rate of return?