Assume that McGill Inc. is expected to experience supernormal growth of 25 percent for the next 2 years,  followed by  15 percent  for  the year after, and  then  to  return  to its long‐run constant growth  rate of  4  percent. McGill Inc. most recent dividend was $1.25.  The investor’s required rate of return is 11%.  ( a) Calculate the current price of the stock.  (b) What is the expected dividend yield and capital gains yield in Year 1? (c) What is the expected dividend yield and capital gains yield in Year 4?

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