MBC Inc. just paid a dividend of $8.00 per share but plans to pay $2.00 per share every quarter from the next quarter up till the last quarter of year 7, after which the dividends will be paid $2.50 per share every quarter forever. Dividends are paid at the end of period. The required rate of return on this stock is 8%.

a. (5 points) What is the current price of MBCs common stock?

b. (3 points) What is the expected stock price four years from today?

c. (2 point) What is the expected stock price 15 years from today?