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Agarwal Technologies was founded 10 years ago, It has been profitable for the last 5 years, but it has needed all of its earnings to

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Agarwal Technologies was founded 10 years ago, It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.95 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11.00%, what is your estimate of the stock's current value? Use the dividend values provided in the table below for your calculations. Do not round your intermediate calculations. 0 1 2 3 6 Growth NA NA 80.00% 8.00% Dividends 50.0000 50.0000 $0.9500 $2.5650 $2.7702 O. 558.14 Year 4 NA NA rate 50.0096 { 50.0000 51.7100 b. $59.62 c56454 d. 554.08 O 1.352.71

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