Hadlock Healthcare expect to pay a $1.00 dividend at the end of the year (DI $ 1.00). The stocks dividend is expected to grow at a rate of 10 percent a year until three year from now (t=3). After this time, the stocks dividend is expected to grow at a constant rate of 5 percent a year. The stocks required rate of the return K is 11 percent.

A. Estimate the stock price P0. B. Calculate expected dividend yield and expected capital gain yield, if purchase the stock with a price calculate in part A. C. Estimate expected stock in year 1, that is P1 D. Estimate expected stock price in year 5, that is P5