Roadrunner Enterprises is expected to grow its dividends and earnings at various rates. The company just paid a cash dividend of $2.00 per share. The company expects to grow its dividend at 15% for the next three years, then at 14% for the following two years, after which the company expects to grow at a constant rate of 12% per year indefinitely. The required rate of return on Roadrunner's common stock is 16%.

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What are the dividends in years 1 through 5?

What is the Fair Market Value of the stock at the end of year 5 ?

What is the Fair Market Value of the stock now?

If the stock now trades at $80 per share, is the stock rich or cheap?