iDream company just paid $3 dividend per share. If you are interested in buying the company's and expected 12% return. Find the stock price you are willing to pay for each of the following conditions:
a. If the dividend grows at 6% for each of the next four years, and you expect to sell the stock for $45 four years later.
b. If the dividend grows at 8% each year in the future.
c. If the dividend grows at 10% each year in the future, find the stock price three years later.
d. If the current stock price is $55, your required return is 12%, what is the expected dividend growth rate?.
e. If the current stock price is $60, the expected dividend growth rate is 8%, what is the expected return?