You expect a share of stock to pay dividends of $1.00, $1.50 and $1.75 in each of the next 3 years. Thereafter, dividend growth is expected to be 4% a year forever. The current stock price is $60 per share. a. If you plan to hold the stock for 3 years, and you believe the stock will sell for $65 at the end of the third year. Whats you holding period return? Whats dividend yield? And whats your capital gain yield? b. If you plan to hold the stock indefinitely, and you expect the discount rate for the stock is 10%. Do you think this is a good investment opportunity?

Show your calculation steps and keep two decimal places. If you use a financial calculator, tell me your inputs and output (N, i/Y, PMT. PV, FV)