Problem $7-32$ Nonconstant Growth $($LO$2)$

A company will pay a $$2$ per share dividend in $1$ year. The dividend in $2$ years will be $$4$ per share, and it is expected that dividends will

grow at $2\%$ per year thereafter. The expected rate of return on the stock is $12\%.$

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

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Current price

b$.$ What is the expected price of the stock in a year?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Expected price