Assume that the average firm in your companys industry is expected to grow at a constant

rate of 5% and that its dividend yield is 7%. Your company is about as risky as the average firm in the

industry, but it has just successfully completed some R&D work that leads you to expect that its earnings

and dividends will grow at a rate of 30% this year and 10% the following year, after which growth should

return to the 5% industry average. If the last dividend paid (D0) was $1, what is the value per share of

your firms stock?