The Elephant Corporation pays dividends annually. It is just about to pay a dividend of $8 per share. Its dividend is expected to grow at a rate of 15 percent for the next three years (i.e. during...

The Elephant Corporation pays dividends annually. It is just about to pay a dividend of $8 per share. Its dividend is expected to grow at a rate of 15 percent for the next three years (i.e. during years 1, 2 and 3). After that it is expected to grow at 4 percent each year forever. The market capitalization rate on similar stocks is 14 percent.

1. Calculate the price of the stock at the end of the supernormal growth period.

2. What is the current price of the stock?

3. What is the current dividend yield?