Happy Valley Corporation is expected to pay a dividend of $12 per share next year and after that the dividends will grow for 5% per year every year forever. a) If the required rate of return is 10%, what is the current stock price? b) What is its dividend yield? c) What will be the stock price next year? d) Suppose that dividends will grow at 15% per for 4 years, from year 5 the growth rate will decline to 4% per year in perpetuity. What should be the current stock price?

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