Today is November 202020 . U.S.-based company Hamburgler Lukewarm pays 4 equal quarterly dividends before increasing the dividend in the following fiscal year by 4.0% (keeping it constant for 4 payments) and so on. It will pay its next dividend of $1.18 on February 20 (exactly one quarter from now) and keep the dividend at that level for another 3 quarters. The discount rate is 14.970%

Q1What is the applicable discount rate for a period of one quarter?

Q2Compute the future value of the next 4 quarterly dividends in exactly one year from now. This way, you can pretend that the firm pays one large end-of-year dividend. The future value of the next 4 dividends is

Q3Based on this equivalent dividend, compute the share price.