Company X is expected to pay an end$-$of$-$year dividend of $$10$ a share. After the dividend, its stock is expected to sell at $$220.$ The market capitalization rate $($i$.$e$.$ expected opportunity cost of equity or expected return on equity$)$ is $8\%.$

$($a$)$ What is the current stock price?

$($b$)$ Assume an investor wishes to purchase the shares and keep them forever. What would be the maximum stock price she would be willing to pay, if she expects the annual dividends to grow at $0\%,3\%$ or $5\%$ pa$?$

$($c$)$ Compare your answers in a$.$ and b$.$ and interpret your observations.