Check My Work (9 remaining) 10. eBook Highland Pet Supplies Company forecasts earnings per share of $3.00 during the coming year. Highland has always paid a dividend equal to 50 percent of its earnings, and it anticipates continuing this practice. Earnings are expected to increase at a rate of 24 percent per year in years 2 and 3, 21 percent in year 4, and 15 percent per year thereafter. The beta of Highland stock is 1.5, the risk-free rate is 5 percent, and the market risk premium has been estimated to be 8 percent. Use Table II to answer the questions below. Round your answers for the questions below to the nearest cent. a. What is the current (time 0) value of a share of Highland stock? 11. 12. 13. 14. 15. 16. 17. 18. 6 19. 20. 20 5.08 b. What value would you project for a share of stock at the beginning of year 3? 6.23 Hide Feedback Incorrect Check My Work (9 remaining)