Conroy Consulting Corporation (CCC) has a current dividend of D₀ = $2.50. Shareholders require a 12% rate of return. Although the dividend has been growing at a rate of 30% per year in recent years, this growth rate is expected to last only for another 2 years (g_0,1 = g_1,2 = 30%). After Year 2, the growth rate will stabilize at g_L = 7%. 

a. What is CCC’s stock worth today? 

b. What is the expected stock price at Year 1? 

c. What is the Year 1 expected;

(1) Dividend yield. 

(2) Capital gains yield. 

(3) Total return? 

d. What is its expected dividend yield for the second year? The expected capital gains yield? The expected total return?