1) R&C has announced that it will pay dividends of $2 per share in year 1, $2 per share in year 2, and $4 per share in year 3. The firm then expects its dividend to increase by 5% per year for two years (year 4 and 5). Thereafter the dividends will grow at 3% indefinitely. The required rate of return is 12%. What is the current value of the stock?