Please assist with the given problem.
The dividend per share in one year is $2. In year two it is $4 a share. Then the dividend will grow at 5% per year after that. The expected rate of return is 12%.
a. What is the current stock price?
b. What is the expected price of the stock in one year?
c. The expected return of 12% equals dividend yield plus capital appreciation
Please show formula and calculation in simple terms.