Catalina Corporation just paid a $5.00 dividend yesterday to its shareholders. In the annual meeting, the Chief Executive indicated that they are targeting to have a 15% growth in dividend for next 5 years, after which it is expected to grow forever at sustained annual rate of 4% per year. You expect to earn 19% total return on this stock.

1. What is the expected sales price of the stock at the end of year 8?

2. For the above problem, what is the value of the stock today?