The most recently paid dividend by Bridges \& Associates was $0.625 per share. For the coming 3 years, the annual growth of its dividend is expected to be 20%,25% and 35% respectively. After 3 years, the dividend growth will slow down to a constant rate of 6% per year. The required rate of return on the stock of Bridges \& Associates is 10%. 1. What would be the value of the stock today? 2. What would be the value of the stock 5 years from today? 3. If market is in equilibrium, calculate the total return stock investors expect to earn in year 1. 4. If market is in equilibrium, calculate the dividend yield and capital gains yield stock investors expect to earn in Year 5 5. If an investor expects to earn a total return of 12%, is the stock currently over-valued or under-valued? Explain