G H Zweite Pharma is a fast growing drug company. Management forecasts that in the next 3 years, the company's dividend growth rates will be 30 percent, 28 percent, and 24 percent respectively. Last week it paid a dividend of $1.67. After 3 years, management expects dividend growth to stabilize at a rate of 8 percent. The required rate of return is 14 percent. a. Compute the dividends for each of the next 3 years, and calculate their present value. Do gi ga gs= Required Rate of Return (R)- D = PV D = PV_D= D= Dy= PV D = PV of Dividends (years 1-3): b. Calculate the price of the stock at the end of year 3, when the firm settles to a constant growth rate. Hint: Calculate D. (expected dividend in year 4) and use the constant growth dividend model to estimate P. Constant Growth Rate (g) D= P = c. What is the current price of the stock? Hint: Find the present value of P, and add this amount to the present value of the first three years of dividends. PV_P- Current Price of the Stock (Po)