IBM paid $1.50 per share in dividends this year. Analyst expects that the market return and the risk free rate would be 8% and 3%, respectively, for next two centuries. Also, the earnings growth rate, the payout ratio and the beta of IBM are expected to change in the following way;

Dividends at year 0	$1.50
Risk free rate	3.00%
Market Return	8.00%
Range Years	1-5	6-10	11-15	16-20	21-
Beginning Year	1	6	11	16	21
Growth Rate	12%	11%	9%	5%	2%
Beta	1.2	1.0	0.8	0.7	0.6

table is year 1 through 400

1-5 6-10 11-15 16-20 21-06 Years Growth Rate of Earnings 12% 11% 9% 5% 2% Beta 1.2 1.0 0.8 0.7 0.6 Using the given information, answer the following questions. a. What is the expected dividend at year 10? b. By using CAPM, calculate the appropriate required rate of return of IBM(RRR ) at year 21. The equation of an expected RRR is RRR = R; +B*(Rm-R), where Ry, B, and Rm represent risk free rate, beta, and the market rate of return, respectively. c. Find the present value of dividend that will be paid at year 25 d. What is the cumulative present value of dividends at year 16? e. What is the expected price of IBM stock now? Year Growth rate Dividend Beta RRR Discount Factor PV of Div 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 20