Simeon INC. just paid annual dividents of $2.00 on its common stock, and the company intends to pay $2.20, $2.40, and $2.60 dividends over the next three years. In the fourth year, the company expects to begin increasing its annual dividends at a constant rate of 3%. Simeon INC. requires a return on investment of 7%.

a) The computed D4 (dividends amount for the fourth year) is $ _______.

b) Assume the fourth year (D4) amount is $2.70. The computed stock price of Simeon at the end of the third year (P3) is $ _____.

c) In addition to the assumption to the problem above (b.), assume the price at the end of the third year (P3) is $70.00. The computed current stock price (P0) for Simeon is $ _______.