Hayley owns a specialized learning center, in which she and her associates teach kids of all ages who are having difficulty with school. Hayley has been studying the demographics for the surrounding area and she has discovered that there will be 20% more children of school age in each of the next three years. Hayley thinks that she will see a corresponding rise in her business in the next three years and a corresponding rise in the dividend she is able to pay. Her current dividend is $3.25 per share. Hayley is fairly sure that her normal growth rate of 3% will kick back in after these three years of phenomenal growth. Other investments similar to Hayley’s are expecting 5%.

What is the current value of a share of Hayley’s Learning Center? _________________________

What will be the value of a share in three years? ___________________

What will be the value in ten years? __________________