Please respond to the following. Show All Work / Explain:

1a. Suppose a company is currently not paying any dividends. You predict that, in five years, the company will pay dividend for the first time. The dividend will be $.50 per share. You expect that this divided then grow at a rate of 10% per year indefinitely. The required return is 20%. What is the price of the stock today?

1b. Have different dividends for years 1 to 3 but after, dividend grow at constant rate of 5% per year required return is 10%. What is the value of stock today?

1c. Suppose Back in Black Consulting Co.s stock is selling for $21.00. Back in Black Consulting just paid a $2 dividend and dividends are expected to grow at 5% per year. What is the required rate of return for Back in Black stock?

1 2 2 3 4 0 + $1.00 $2.00 $2.50 $2.50(1.05) Nonconstant growth Constant growth