The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 21% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 16% per year.

What do you expect its price to be one year from now?

What is the implied capital gain?

Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate?