A stock will pay a $3 divident one year from today(t=1). The dividend is expected to grow by 14% per year for the subsequent 3 years, adn then by 4% per year thereafter. assume that the return is 12% per year , compounded annually.
a) at what price should the stock sell today?
b) at what price should the stock sell three years from today (at t=3, the instant before the t=3 div is paid)
c) at what price should the stock sell three years from today(at t=3, the instant after the t=3 div is paid)