Hurricane Travel Service, Inc. just issued a dividend of $3.15 per share. Hurricane is expected to have phenomenal growth in the next two years (22%) and then level off to a constant 5.2% growth after that.
The rate expected in the marketplace for investments similar to Hurricane is 7%.
What is the current value of a share of Hurricane Travel Service, Inc.? ___________________
What will the dividend be in year three? __________________________
What will the share value be in year four? __________________________