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You expect a share of stock to pay dividends of $1.10; $1.35, and $1.50 in each of the next 3 years. You believe the stock

You expect a share of stock to pay dividends of $1.10; $1.35, and $1.50 in each of the next 3 years. You believe the stock will sell for $22.50 at the end of the third year.

a) What is the stock price today if the required rate of return for the stock is 9.5%?

b)What is the dividend yield on the stock?

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