You expect the Cochese Limited Group to increase dividends 20% for the next three years. Thereafter, g will settle to its long-run growth rate of 5%. If the required rate of return on the stock is 10% and the company just paid a dividend of $3.50, what is the current stock price? Include a timeline showing dividend payments in periods 1-4.

c) Assuming that you are correct about the Cochese Group dividend payout, what do you expect next periods stock price to be? What will be your one-period total return from holding the stock between t=0 and t=1? Show how you derived your answers. Again, assuming you are correct about dividend payouts and nothing else changes, do you expect to earn this rate of return forever? Explain why or why not.