8. Among Homer Simpson’s many experiences as an (failed) entrepreneur is the time that he started a firm to recycle used

[answerhappygod]

8. Among Homer Simpson’s many experiences as an (failed)
entrepreneur is the time that he started a firm to recycle used
grease. The current dividend on this stock is $0.90, and Homer
expects that the dividend growth rate will be 6% for each of the
next two years, 12% in the third year, and then will remain steady
at 10% thereafter. Given the risky nature of purifying grease,
prospective investors require a 15% rate of return if they are to
invest in the stock of this enterprise. How much is this stock
worth today? Based on the above information, how much should you
expect the stock to cost in three years?