You are trying to value the stocks of Imaginary Inc. The company is currently involved in a very risky, but potentially very profitable project. In the preceding year, the company had earnings of $10...

You are trying to value the stocks of Imaginary Inc. The company is currently involved in
a very risky, but potentially very profitable project. In the preceding year, the company
had earnings of $10 per share. You expect the earnings per share to grow to $15, $20, and
$25 in the next three years, after which you expect a growth rate of 2%. The company
always applies a plowback ratio of 60%. You estimate that a risk-adjusted discount rate
of 10% is appropriate.
a). What are the expected dividends per share in the next three years?
b). What is the expected price per share three years from now?
c). What is the fair stock price per share today?