Nonconstant Dividend Growth Valuation

Conroy Consulting Corporation $(CCC)$ has a current dividend of $D_0=$$$2\mathrm{.}70.$ Shareholders require a $13\%$ rate of return. Although the dividend has been

growing at a rate of $28\%$ per year in recent years, this growth rate is expected to last only for another $2$ years $(g_{0,1}=g_{1,2}=28\%).$ After Year $2,$ the growth

rate will stabilize at $gL=6\%.$

a$.$ What is CCC$\text{'}$s stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent.

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b$.$ What is the expected stock price at Year $1?$ Do not round intermediate calculations. Round your answer to the nearest cent.

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c$.$ What is the Year $1$ expected $(1)$ dividend yield, $(2)$ capital gains yield, and $(3)$ total return? Do not round intermediate calculations. Round your answers to

two decimal places.

Dividend yield:

$\%$

Capital gains yield:

$\%$

Total return:

$\%$

d$.$ What is its expected dividend yield for the second year? The expected capital gains yield? The expected total return? Do not round intermediate

calculations. Round your answers to two decimal places.

Dividend yield:

Capital gains yield:

Total return:

$\%$

$\%$

$\%$