Cames Cosmetics Co. just paid a $1.00 dividend. This dividend is expected to grow at 30% for the next 4 years, then grow forever at a constant rate of 6%. The required rate of return on this stock is 14 percent.

a) What are the expected values of DIV1, DIV2, DIV3, DIV4, and DIV5? (Please keep as as many digits as your calculator shows for a).)

b) What is the expected stock price 4 years from now?

c) What is the stock price today? d) Find the dividend yield, DIV1/P0. e) What will next year's stock price, P1, be?

f) What is the expected rate of return to an investor who buys the stock now and sells it in one year?