Consider a stock that will have dividend growth rates in the next three periods of 9%, 10%, and 4.5%, respectively. The third growth rate remains forever. The company just paid a dividend, D_0, of $1.24. The interest rate is 9%. How much are the dividends in periods 1, 2, and 3? Enter your answers rounded to 2 DECIMAL PLACES.

D1=

D2=

D3=

b.Using 1.56 as the dividend in period 3, what is the price of the stock at time 2?

Enter your response below rounded to 2 DECIMAL PLACES.

c.Using the correct answers from the previous questions, what is the price in the current period?

Enter your response below rounded to 2 DECIMAL PLACES.

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