Grf dividends are expected to have a 20 percent short term growth rate for the next four years.

beginning in year 5, the growth rate is expected to drop to 7 percent per year and last indefinately.

A. if grf paid a $3 dividend (div 0) and the appropriate discount rate is 15%, then what is the price of a share of Grf?

B. if you know that the short term return of a new investment is 18%, what should be the short term payout that allows a share price equal to 50$?