Las Vegas Sands Incorporated is expected to grow at an exceptionally high rate over the next 3 years due to their forthcoming acquisition of the Wynn Resorts.

a. One Analyst estimates that this venture will result in a growth in dividends of 50% for the next 2 years before reverting back to a constant rate of 4% that is expected to continue indefinitely afterward. Assuming this scenario is correct, if Las Vegas Sands paid a $1.80 dividend yesterday (D₀ = $1.80) and the stock is valued according to a required rate of return of 12%, what is the value of a share of Las Vegas Sands stock today?

b. Another Analyst estimates that the venture will result in a 6% constant growth rate in dividends starting today that is expected to continue indefinitely into the future. Assuming this alternative scenario is correct, if Las Vegas Sands paid a $1.80 dividend yesterday (D₀ = $1.80) and the stock is valued according to a required rate of return of 12%, what is the value of Las Vegas Sands stock today?