IBMs stock is expected to pay a dividend of $2.15 at the end of the year, and then the dividend is expected to grow at 11.2% per year forever. The required rate of return on IBM stock is 15.2% per year.

a. What is the current price of IBM stock?

b. What is the expected price of IBMs stock at the beginning of next year?

c.If an investor were to buy IBM stock now and sell it after receiving the $2.15 dividend a year from now, what is the expected capital gain in percentage terms? What is the dividend yield, and what is the total rate of return on the investment?