[Blindmath] Finance stock questions

[Kathryn Webster]

Morning,

                I am working with Excel on valuing a bond, and I am
interested in knowing how to set up the following question:

 

A firm is just about to pay a dividend of $2 per share. This is expected to
grow at 15% a year for five years, 10% a year for the ten years after that
before finally settling down to a growth rate of 5% per year forever. The
required rate of similar stocks is 10%. 

 

a. Calculate the current price of a share 

 

b.  The current share price is $62.13.  Determine the required rate of
return under the assumption that dividend projections are correct.


Thank you in advance!

Kathryn