P$8\mathrm{.}11$ Assume you$$ve generated the following information about the stock of Bufford$$s Burger

Barns: The company$$s latest dividends of $$4$ a share are expected to grow to $$4\mathrm{.}32$ next year, to

$$4\mathrm{.}67$ the year after that, and to $$5\mathrm{.}04$ in year $3.$ In addition, the price of the stock is expected to

rise from $$56\mathrm{.}50($its current price$)$ to $$77\mathrm{.}75$ in $3$ years.

a$.$ Use the dividends$-$and$-$earnings model and a required return of $15\%$ to find the value of the stock.

b$.$ Use the IRR procedure to find the stock$$s expected return.

c$.$ Given that dividends are expected to grow indefinitely at $8\%,$ use a $15\%$ required rate of return and the dividend valuation model to find the value of the stock.

d$.$ Assume dividends in year $3$ actually amount to $$5\mathrm{.}04,$ the dividend growth rate stays at $8\%,$ and the required rate of return stays at $15\%.$ Use the dividend valuation model to find the price of the stock at the end of year $3.[$Hint: In this case, the value of the stock will depend on dividends in year $4,$ which equal D$3*(1+$ g$).]$ Do you note any similarity between your answer here and the forecasted price of the stock $($$$77\mathrm{.}75)$ given in the problem? Explain.