Oscar and Ravin company expects to maintain its present super normal growth of 20% per annum for year one, 12% growth for year two and 8% growth for year three, thereafter its growth rate is expected to slow down to 5% per annum as in the industry. Stockholders required rate of return is 12% per annum. The last dividend was $2.50.

(a) What is the worth of Oscar and Ravin Company's stock today?

(b) Its expected rate of return this time, clearly indicating the dividend yield and capital gain yield.