Question $2$: Company XYZ just paid a dividend of $$2$ per share. The dividend is expected to grow at a constant rate of $5\%$ per year indefinitely. If the required rate of return for investors is $10\%,$ what is the current value of the stock using the Gordon Growth Model?

Question $3$ Based on Question $2,$ suppose that company XYZ declares that its new European plant is under construction and will increase the company$$s sales growth in $5$ years. You therefore revise your expectation about XYZ$$s dividend growth rate. That is$,$ it will be $6\%$ annually starting from $2029.$ What is the new current value of the stock?