Integrated Financial Wizardry paid a dividend of $5 per share yesterday. You expect the dividend to grow steadily at 6 percent per year indefinitely. (Hint: try doing the calculations below without rounding.)

a.What is the expected dividend per share one year from now and two years from now?

b.If the discount rate is 8 percent, at what price do you expect the stock to sell today?

c.What is the expected stock price one year from now?