JSC has a dividend growth rate of 25% per year in recent years. The same growth rate is expected to last for another two years. After that the dividend growth rate drops to 6% forever. The current dividend is $2.00 per share, the required rate of return for the stock is 14%.

1. What is the firm's stock worth today?

2. What is the dividend yield if you hold the stock for one year?

3. What will be the stock's dividend yield after its period of supernormal growth ends, i,e. when the dividend grows at the constant rate of 6% forever?

4. In the constant dividend growth model for stock, the expected stock return is the sum of

a. capital gains yield and the dividend growth rate.

b. capital gains yield and dividend yield.

c. current yield and the dividend growth rate.

d. current yield and the dividend yield.