Norman Osborn, the founder of Oscorp, had a vision of creating a corporation which steadily grows at 4.8% perpetually. Analysts expect Oscorp to pay $4.12 dividend a year from today. Oscorps cost of equity is 13%.

1. Calculate the stock price of Oscorp. Round to three decimals. Please show your work.

2. Norman Osborn has been informed by his scientists that they are close to reaching a breakthrough in robotics which will double their annual growth rates in the future. If their dividend grows at the current rate (4.8%) for the next three years (i.e., years 2-4) and the new growth rate is applicable after that, what will be the new stock price of Oscorp? (Note: Oscorps next year dividend is $4.12 and the cost of equity is 13%). Round to three decimals and please show your work.

3. Norman Osborn changed his mind about perpetual dividend payment system. Instead, he wants to implement a plan which includes 15 years of dividend payments growing at a certain rate and no dividends afterwards. Furthermore, Norman Osborn does not want the stock price of Oscorp to be affected by this dividend policy change. Norman now assumes that the Oscorp stocks will pay a dividend of $4.50 a year from today and the Oscorp stocks are currently priced at 4.8% (perpetual) growth rate. If the cost of equity is still 13%, how much annual growth should Harry aim to successfully implement dividend policy change? Please show your work and round the growth rate to four decimal places.