Bahamas Inc. is experiencing rapid growth. The company expectsdividends to grow at 15 % per year for the next 4 years beforeleveling off at 6% into perpetuity. The required return on thecompany's stock is 11 percent. The dividend per share just paid was$1.25. 1) calculate the current market value of Bahamas Inc.'sstock. 2) calculate the expected market price of the share in oneyear. 3) calculate the expected dividend yield and capital gainsyield expected at the end of the first year.
