Home Deport has the following expected future dividends to be paid at the end of the given years:

Year	2021	2022	2023	2024	2025...
Dividend	3.04	3.25	3.50	3.75	Grow at 3% per year

(a) If Home Depots expected return on equity is 10%, calculate the expected price of their stock at the beginning of 2021. [5 points]

(b) If Home Depots actual share price is $109.00, then what would you conclude about the actual implied future dividend growth rate? Be quantitatively specific in your answer.

Assume Risk-free rate=3%; Equity market risk premium=7%; Tax rate=21%.