The XYZ Company just paid a dividend of D0 = $1.5 per share, and that dividend is expected to grow at a constant rate of 4.00% for the first 4 years and then 2% per year from year 5 till forever. The company's beta is 1.1, the expected market return is 8%, and the risk-free rate is 3.00%.
(a) What is the company's current stock price?
(b) What is expected stock price in 5 years?
(c) What is expected stock price in 8 years?