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Consider a stock that plans to pay no dividend until 4 years from now. At that point, it will pay a $2.50 dividend (D4=2.50). After

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Consider a stock that plans to pay no dividend until 4 years from now. At that point, it will pay a $2.50 dividend (D4=2.50). After that, dividends will increase by 5% per year forever. The required return on the stock is 10%. a. What are stock price today and this year's dividend yield and capital gains yield? b. What are stock price, DY, and CGY in 2 years? c. What are stock price, DY, and CGY in 6 years

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