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G. Now assume that Bon Tempss dividend is expected to grow 30% the first year, 20% the second year, 10% the third year, and return

G. Now assume that Bon Tempss dividend is expected to grow 30% the first year, 20% the second year, 10% the third year, and return to its long-run constant growth rate of 4%. What is the stocks value under these conditions? What are its expected dividend and capital gains yields in Year 1? And in year 4?

H. Suppose Bon Temps is expected to experience zero growth during the first 3 years and then to resume its steady-state growth of 4% in the fourth year. What is the stocks value now? What would be its expected dividend yield and its capital gains yield in year 1? In Year 4?

I. Finally, assume that Bon Tempss earnings and dividends are expected to decline at a constant rate of 4 percent per year, that is, g = -4%. Why would anyone be willing to buy such a stock, and at what price should it sell? What would be its dividend yield and capital gains yields in each year?

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