1. 1. Cherry Auto Sales just opened and does not expect to pay a dividend during its first year. At the end of its second year, Cherry's owners expect to pay a $2.00 dividend and plan to increase it 7% annually. If the required return is 20%, what should Cherry's stock price be? 

Please explain in details how did we got from the first price of 15.38 to 12.82. supplement each step with statements explaining the step.