A financial analyst tries to estimate the stock price of Precision Inc. Precision just announced its

earnings per share of $6 today, but the company currently pays no dividends. The analyst expects

Precisions earnings to grow at 12% per year in the following three years. After that, the earnings

will grow at 8% per year for five years and then slow down to 2% forever. Precision plans to pay

out its first annual dividend in 4 years by distributing 50% of its earnings to shareholders, and the

company does not plan to change its payout policy in the foreseeable future. How much is the

price of a share of Precision if the discount rate is 12% (EAR)?

Please list out the calculation step and formula (not excel), Thank you