Question: CC.com currently pays irregular dividends in the next four years: D1=$2, D2=$2.5, D3=$5.2, D4=$8.5. Investors believe that the dividends are expected to grow at 2%

CC.com currently pays irregular dividends in the next four years: D1=$2, D2=$2.5, D3=$5.2, D4=$8.5. Investors believe that the dividends are expected to grow at 2% thereafter. The required rate of return on the stock is 8%.

a.What is the current market price of the stock?

(Round up your answer to the nearest two decimal points)

b.What would be the stock price in 10 years?

(Round up your answer to the nearest two decimal points)

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