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Jax Hydraulic Lifts is a publicly listed firm and has provided the following information for the...

Jax Hydraulic Lifts is a publicly listed firm and has provided the following information for the next two questions.

Jax's stock is expected to pay a $$0.780.78 per-share dividend at the end of the year (t=1). The dividend is expected to grow 26.026.0 percent the next year (t=2) and 38.038.0 percent the following year (t=3). After t=3, the dividend is expected to grow at a constant rate of 66 percent a year. The company's cost of common equity is 10.510.5 percent and it is expected to remain constant.

(a) What is the expected price of the stock today? (Give answer to 2 decimal places)

(b) What is the expected price of the stock 10 years from today? (Give answer to 2 decimal places)

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