1. Olympic Beverage Company expects its earnings and dividends to increase by 12% over the next 5 years and then increase by 7% thereafter. The firm currently pays a dividend of $3 per share. ASSUMING that the present value in today's dollars of the cash flows you can expect from the INITIAL growth period is $15, what is the a: value of the cash flows expected from the terminal period; and b: what is the total value of the stock? The investor's required rate of return is 15%.

   	a.	a. $70.15 b. $85.15
   	b.	a. $5.66, b. $ $20.66
   	c.	a. $35.16, b. 50.16
   	d.	a. 13.87, b. $28.87