1. Walmart Inc is expected to pay the following dividends over the next three years: $6 in one year (t = 1), $7.8 in two years (t = 2) and $8.5 in three years (t = 3). Afterwards, the company is expected to maintain a constant 4% growth rate in dividends forever. Securities of the same risk as Walmart offer an expected return of 12%.
   1. What is the current share price for Walmart, assuming that the stock is correctly priced?
   2. What is the expected price for Walmart stock in one year (t = 1), immediately after the dividend paid at that time? (Assume that the stock will be correctly priced at the end of the year.)
   3. Suppose you buy the stock today (t = 0) at the price calculated in part a, and you sell it at the end of the year (t = 1), immediately after receiving the dividend paid at that time, for the price calculated in part b. What your expected holding period return?

Please do not answer with an excel sheet. I need to see it written down with the formulas. Thank you!