XYZ Berhad shares are currently selling at RM9.00 each and the forecasted dividend for next year is RM0.60 per share. The dividends are expected to grow at 5% per year for the next 3 years and then at a more gradual rate of 4% a year indefinitely.

If the required rate of return is 12%,what the selling price of the fourth year? If the required rate of return is 12%,how much would you pay for the stock now?