1)
D1 = 2(1 + 4%)
D1 = 2.08
Current stock price = D1 / required rate - growth rate
Current stock price = 2.08 / 0.12 - 0.04
Current stock price = 2.08 / 0.08
Current stock price = $26.00
2)
Stock price in 3 years = Present value (1 + growth rate)^n
Stock price in 3 years = 26 (1 + 0.04)^3
Stock price in 3 years = 26 * 1.124864
Stock price n 3 years = $29.52
3)
Stock price in 12 years = Present value (1 + growth rate)^n
Stock price in 12 years = 26 (1 + 0.04)^12
Stock price in 12 years = 26 * 1.601032
Stock price n 12 years = $41.63
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