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7) [3.25 points; partial credit] Fresh Food Services is expected to pay out the following dividends over the next three years: $5.00, $4.00, and $2.50.

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7) [3.25 points; partial credit] Fresh Food Services is expected to pay out the following dividends over the next three years: $5.00, $4.00, and $2.50. After that, the dividends will grow at a constant rate of 2%/year forever. If the required rate of return on the stock is 5%/year, what is the current share price? (show me your work!)

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