What are the benefits and issues related to stock ownership as an investment type? What are the issues related to equity as a source of additional funds, and valuation concepts?

Problem 13) Stock ABC is expected to pay dividends of $1.20 and $1.50 respectively, in one and two years. After that, stock ABC is entering a constant growth stage. Then stock ABC is expected to grow with the constant growth rate of 4%. If the required rate of return on ABC is 12% what is the price of ABC?

Must show work to receive all 20 points!