A fast-growing firm recently paid a dividend of $0.35 per share. The dividend is expected to increase at a 20 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed.

If a 12.5 percent discount rate is appropriate for this stock, what is its value?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Please also show me how to get the 12.5% discount and present value.