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ClapTrap is a rapidly growing image messaging company. The company's growth strategy requires rapid reinvestment currently, but dividend payouts will increase as growth opportunities gradually

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ClapTrap is a rapidly growing image messaging company. The company's growth strategy requires rapid reinvestment currently, but dividend payouts will increase as growth opportunities gradually disappear. You have the following financial information: Earnings in the most recently concluded fiscal year were $6.81, which the company fully retained and reinvested in new projects at time 0 with an expected return on new investment of 43% during year 1. At the end of year 1, the company plans to retain 85% of its earnings, and the return on new investment is expected to be 30% in year 2. In the following year (t=2), the company will retain 72% of its earnings with an expected return on new investment of 18% in year 3. The company will then enter a period of stable growth (t=3), retaining 49% of its earnings in perpetuity. Compute all earnings and dividends for years 1 through 3

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