Consider a company that most recently paid a dividend of $1.20. They plan to increase the dividend to 24% each year for the next 4 years. After that, they will increase the dividend by 12% for 1 year, after which they will level off to a constant growth rate dividends of 3.5%. The required return on the stock is 15%.

a. What is the value of the stock today?

b. What is the value of the stock 4 years from today?

c. What is this years dividends yield and capital gains yield?

d. What will be the dividend yield and capital gains yield in 10 years?