A company plans to pay a dividend of $2 in 3 years. After that, dividends will grow by 35% for 2 years. After that, dividends will grow by 5% indefinitely. The required return is 11%. Determine each of the figures below and explain how you arrived at your answers.
• Stock price today, dividend yield and capital gains yield this year.
• Stock price in 4 years, dividend yield and capital gains yield that year.
• Stock price in 15 years, dividend yield and capital gains yield that year.