Answer:
Missing word "What will the stock price be in three years?"
a. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05) / (0.12-0.05)
Current price = 1.4*1.05 / 0.07
Current price = 1.47 / 0.07
Current price = $21
b. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05)^4 / (0.12-0.05)
Current price = 1.4*1.05^4 / 0.07
Current price = 1.4*1.21550625 / 0.07
Current price = 1.70171 / 0.07
Current price = 24.310143
Current price = $24.31
