Kirksville Ice Cream Co. just paid a dividend of $6.50 per share. The company will increase its dividend by 20% next year, and then will reduce this dividend growth rate by 5% a year until it reaches the industry average of 5%, after which the company will keep a constant growth rate forever. The required rate of return on Kirksville stock is 10%.

a. (5 points) What is the current price per share for Kirksville?

b. (3 points) What is the expected price per share for Kirksville two years from today?

c. (2 points) What is the expected price per share for Kirksville 15 years from today?