A stock just paid an annual dividend of $$2.$ The dividend is expected to grow by $6\%$ per year for the next $4$ years. The growth rate of dividends will then fall steadily by $0\mathrm{.}75\%$ per year, from $6\%$ in year $4$ to $3\%$ in year $8$ and stay at that level forever.

The required rate of return is $12\%.$

What is the value of the stock now?

EQUITY MARKETS AND STOCKS