Conroy Consulting Corporation (CCC) has a current dividend of D₀=$2.8. Shareholders require a 9% rate of return. Although the dividend has been growing at a rate of 29% per year in recent years, this growth rate is expected to last only for another 2 years ( g_0,1=g_1,2=29%). After Year 2, the growth rate will stabilize at g_L=8%.

a. What is CCCs stock worth today?

b. What is the expected stock price at Year 1?

c. What is the Year 1 expected (1) dividend yield, (2) capital gains yield, and (3) total return?

d. What is its expected dividend yield for the second year? The expected capital gains yield? The expected total return?