Holmgren Hotels stock has a required return of 11 percent. The stock will be paying a dividend of $1.00 per share next year (D1 = $1.00) and $1.25 in two years(D2 = $1.24), after which dividend is expected to grow at a constant rate of 10 percent per year forever.

a. Calculate the present value of D1 and D2.

b. Calculate the dividend for year 3(D3). c.Calculate the price of the share at the end of year 2(P2)when the company settles to a constant growth rate

d. What should be Holmgren's stock price today(Po)?