Citadel Holdings is experiencing rapid growth. The company expects dividends to grow at 15% per year for the next 4 years before leveling off at 6% into perpetuity. The required return on the companys stock is 11%. The dividend per share just paid was $1.25.

a. Calculate the current market value of Citadel Holdings stock. (4 Marks)

b. Calculate the expected market price of the share in one year. (4 Marks)

c. Calculate the expected dividend yield and capital gains yield expected at the end of the first year.