1. Coral corporation just paid a dividend of $4.25 a share. The company will increase its dividend by 20% next year and will then reduce its dividend growth rate by 5% a year (example year 2 dividend growth rate is 20% - 5% = 15%) until it reaches the industry average of 5 percent dividend growth after which the company will keep the constant growth rate of 5%.
   1. If the required rate of return on Coral corp stock is 11%, what will be the share price according to the Dividend discount model?

If the share price is 63.82$ and all the dividend information remains the same, what is the required rate of return of Coral Stock?