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The Slow Starter Auto Parts Company has just recently been organized. It is expected to experience no growth for the next two years. However, Slow

The Slow Starter Auto Parts Company has just recently been organized. It is expected to experience no growth for the next two years. However, Slow Starter will grow at an annual rate of 15% in the third and fourth years and beginning in the fifth year should attain a 5% growth rate which it will sustain thereafter. The last dividend paid was $3.00 per share. If Slow Starter has a required rate of return of 8%, what is the expected price of the stock today? What is the expected dividend yield in the first year? (16 pts)

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