Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for 4 years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5%. The most recent annual dividend was DIV0=$1 per share. Required: What are the expected values of: (i) DIV1 , (ii) DIV2 , (iii) DIV3 , and (iv) DIV4 ? What is the expected stock price 4 years from now? The discount rate is 10%. What is the stock price today? Find the dividend yield, DIV1P0 . What will next year’s stock price, P1 , be? What is the expected rate of return to an investor who buys the stock now and sells it in 1 year?