The discount rate is 10%

3. Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for 4 years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5%. The most recent annual dividend was DIVO = $1 per share. d. Find the dividend yield, Divi/Po. e. What will next year's stock price, P1, be? f. What is the expected rate of return to an investor who buys the stock now and sells it in 1 year