Stock of the ABC Corporation is projected to pay annual dividends in the future. The next dividend will be $1.20 and is expected one year from now. Dividends are predicted to increase at the rate of 4% per year. An investor is considering purchasing the stock and holding it for 12 years. The investor uses an effective annual interest rate of 12% to evaluate the stock. (a) If the investor expects the stock price to be $60.00 (excluding dividend) when selling after 12 years, what is the current value of the stock according to the investor ? (b) If the investor is prepared to pay $25.00 now for the stock, what does this imply about the stock price 12 years