Problem:
PerfectlySoft Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 6 percent per year thereafter indefinitely. The required return on this stock is 14 percent, and the stock currently sells for $56.20 per share.
Requirement:
Question 1: What is the projected dividend for the coming year?
Question 2: What are the steps in answering this question?
Note: Explain in detail.