finance

7. A company just reported earnings per share of $10.00 paid a dividend of $6.00 a share. Based on the company's risk, shareholders require a return of 9% on its stock. You believe the stock's earnings and dividends will grow 4% a year indefinitely. a. What would you expect the stock's price to be currently? b. What would you expect the stock's price to be ome year from now? c. If you buy the stock for the price you determined in part (a), hold it for one year and then sell it for the price you determined in part (b), will you earn a 9% return? Explain