Wolfpack Inc. just paid $1 dividend per share. It plans to increase the dividend per share at a constant rate of 2.5% for the next 4 years then have a constant dividend growth rate of 2% indefinitely. If the required rate of return is 10% what is one share of this stock worth today?

(a) Calculate dividends

(b) Employ zero or constant growth model

(c) Find present value of the stock today