Dunder Mifflin's most recent earnings were $3 per share, out of which it just paid a dividend of $2.10 per share.

The firm can currently reinvest its earnings in new projects with an ROE of 16%. Dunder Mifflin's CFO believes that finding high ROE projects would be possible for the next five years (years 1-5), but starting from year 6 the ROE on the firm's new projects will go down to 8%. The cost of equity of the firm is 8%, and it is expected to remain at that level in the future. Assume the firm maintains its current reinvestment rate in the future.

a) What would be the dividends growth rate of the firm in years 1 through 5?

b) What would be the terminal (or stable) dividends growth rate of the firm?

c) What should be the price of the stock now (at time 0)? Note: value the firm using a two-stage dividend discount model.

Please solve in Excel and show formula text. Thanks!