Newell Corporation, a manufacturer of do-it-yourself hardware and housewares, reported earnings per share of $4 in 2013, on which it paid dividends per share of $3. Earnings are expected to grow 10% a year from 2013 to 2018, during which period the dividend payout ratio is expected to remain unchanged. After 2018, the earnings growth rate is expected to drop to a stable 6%, and the payout ratio is expected to increase to 80% of earnings. The firm has a beta of 1.5 currently, and it is expected to have a beta of 1 after 2018. The treasury bond rate is 6.25%., and the risk premium is 5.5%

A. What are the cost of equity before 2018 and after 2018?

B. What is the expected price of the stock at the end of 2018?

C. What is the value of the stock at the end of 2018, using the two-stage dividend discount model?