Snyder Computer Chips Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 10 percent during the next 3 years, at 16 percent in the third year, and at a constant rate of 6 percent thereafter. Snyders last dividend was Rs.1.15, and the required rate of return on the stock is 4 percent.

1. Calculate the value of the stock today.

2. Calculate P₁ and P₂.

3. Calculate the dividend yield and capital gains yield for Years 1, 2, and 3.