Let's calculate the stock value for Five Star Co.'s stock based on the following assumptions. You require a return of 11% on your investment. 1. You heard that Five Star Co. recently paid a dividend of $3.04 per share and believe that the company will increase its divided by 3.75% per year indefinitely. How much will you pay for the company's stock today? 2. You found out that the CEO of the company just announced that next year dividend will be $3.50. With the constant growth rate of 3.75% forever, how will this change your stock price that you are willing to pay today? 3. You heard that the company will soon launch a new project which will increase their growth rate to a 20% for the next 4 years. After then, the growth rate will fall to 3.75% per year indefinitely. How will this change your stock price that you are willing to pay today? (note: next year dividend payment will be $3.50 as the CEO announced) 4. Your friend wants to be more realistic than you and believe the new project will increase the company's dividend growth rate to be 20% for the second year, 18% for the third year, 15% for the fourth year, and then 3.75% per year indefinitely. How much will your friend be willing to pay today for the stock? (note: next year dividend payment will be $3.50 as the (EO announced)