A Corporation recently paid a dividends of $4. It expects to have a non-constant growth of 20% for first year and 25% for the second year followed by a constant rate of 8% thereafter. The firms required rate of return is 13%. What is the value of the share today?

Show me your steps in details. All numbers should be rounded to the second decimals:

1- Calculate D1, D2 Dividends during the non-constant years:

2- Calculate the PV of D1 & D2:

3- Calculating the Horizon Value: P₂= D₃/ r_s-g

4- Calculate the PV of the Horizon value.

5- Calculatethe Firms Value

0 r = 13% 1 2. 3 D = $4 8=20% 8=25% D1-$4.80 L&=8% D2-56 D3-56.48 PV(D1)=$4.25 PV(D2)=$4.70 PV(P)=$101.50 P2=$129 0 .6 $110.45 P 0