Rocket Corp is expected to pay dividends of $$1$ each year for the next $4$ years. Immediately

after the $4$th dividend $($at t$=4),$ you will be able to sell the stock for $$10.$ If the Rocket$$s cost of

capital is $8\%,$ what do you expect the price for Rocket Corp to be today?Your friend is also valuing Rocket Corp. They have all of the same expectations and numbers

above EXCEPT for they have a different estimate for the dividends in years $1$ thru $4.$ You find

out that their estimate for the stock price for Rocket Corp is $$11\mathrm{.}50.$ What is their estimate for

the yearly dividend in the next $4$ years $($assume the dividends are the same each year$)?[$Hint

the dividends are an annuity