4. A company yesterday paid its annual dividend of $3.75 and maintained its historic 6.45 per cent annual rate of growth

[answerhappygod]

4. A company yesterday paid its annual dividend of $3.75 and
maintained its historic 6.45 per cent annual rate of growth. You
plan to purchase the shares today because you believe that the
dividend growth rate will increase to 7.25 per cent for the next
three years and the share price will be $63 per share at that point
in time:
(a) How much should you be willing to pay for these shares if
you require a 13.25 per cent return?
(b) What is the maximum price you should be willing to pay for
these shares if you believe that an 8 per cent growth rate can be
maintained indefinitely and you require a 13.2 per cent return?