You have thoroughly analyzed a stock and have estimated that the following dividends will be paid. At the end of the first year = $1, at the end of the second = $2, at the end of the third = $2.5. After this, dividends will grow at a constant 5% forever. You believe that a discount rate of 14% is appropriate given the riskiness of the security.

1. What is the current price of the stock at P0?

2. What is the dividend yield at P0?

3. What is P1?

4. What is the capital gain between P0 and P1?