Question #5: Multi-Stage Growth Model [20 Points] (a) Union Pacific currently does not pay a dividend and you don't expect the company to pay dividends for the next 4 years. However, in Year 4, you expect that the company will begin paying a dividend of $2.20 per share, and you expect dividends to grow indefinitely at a 5.2% rate per year thereafter. If the required rate of return is 13.5 percent, how much is the stock currently worth? [8 Points) (b) Ferrari NV just paid a dividend of d0 = $1.80 per share. The dividends are expected to grow at a rate of 20 percent for the next six years and then level off to a 4.5 percent growth rate indefinitely. If the required rate of return is 12 percent, what is the value of the stock today? [12 Points)