Microsoft paid the following annual dividends over the last 5 years:

Year       Dividend

2009       0.31

2010       0.3193

2011       0.3289

2012       0.3387

2013       0.3489

The next dividend is expected 12 months from now.

a) Based on the historical dividends, what is the expected growth rate of dividends?

b) If you can expect a return of 8% from investments of similar risk, what is the intrinsic value of the stock?

c) If you can expect return of 14% from investments of similar risk, what is the intrinsic value of the stock?