on 1/1/2006 an investor is evaluating ABC's common stock. ABC is expected to pay an annual dividend of $2.8 per share for 2006. This dividend is expected to grow at 40%, 30%, 20% and 15% in years 2007, 2008, 2009 and 2010 respectively. The annual dividend from 2011 onward is expected to be a constant 8%. ABC pays annual dividend at the last day of the year. The investor determined that the required rate of return for such investment to be 20%.
a. What should be the value of ABC;s common stock on 1/1/2006.
b. What are the expected dividend yield and expected capital gains yield in years 2006, 2007,2008, 2009, 2010, 2011 and onward?

Please help.