Vacation Lodge Corporation is expected to pay the following dividends over the next four years: $20.00, $10.00, $6.20 and $2.70. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. The required return on the stock is 14 percent. (Please round your answer to 2 decimal places.)

1. What is the terminal value at year 4 (i.e., P₄)? (3 pts)
2. What is the current share price (i.e., P₀)? (3 pts)
3. Does your current share price increase or decrease if the required return on the stock become 13 percent? (1 pt)
4. By how much will the current share price increase or decrease (i.e., P₀ at 13% - P₀ at 14%)? (3 pts)