Q4 Birdie Corporation will pay a dividend of $1.4 per share at the end of this year and a

dividend of $1.5 per share next year. You expect Birdie's stock price to be $26.00 in two years. You require a 10% return on your investment.

1. What price would you be willing to pay for a share of Birdie today, if you planned to hold the stock for two years? [4 points]
2. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Birdie stock in one year? [4 points]
3. Given your answer to part b), what price would you be willing to pay for a share of Birdie today, if you planned to hold the stock for one year? How does this price compare to your answer in part a)? [4 points]