New competition in Sophco s market is going to have an impact on the growth in the firm s dividends. A current dividend of $1.00 was paid yesterday by Sophco, and this dividend is expected to increase by 25% in the first year. After that point, the growth in dividends is expected to decay to the firm s long-run constant g rowth of 10%. Such a decay process is one in which dividend growth declines by 5 p ercentage points per year up to the point where the expected constant rate of dividend growth is reached. So, year 2 dividend will be 20 percent higher than year 1, year 3 dividends will be 15 percent higher than year 1, and after year 3, dividends will grow by 10 percent forever. For problems 40 43, assume investors in Sophco require a rate of return of 15%.Calculate Sophco s dividend in year 2. Calculate the Sophco s dividend in year 4. Determine the price of Sophco s stock at the end of year 3 (just after the dividend has been paid).. Calculate the current price of Sophco s stock.