1. Assume that the average firm in your companys industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Therefore, the required rate of return on the stocks in your industry is 13%, since it is about as risky as the average firm in the industry.

However, your company has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 50% this year and 25% the following year, after which growth rate should match the 6% industry average rate.

The last dividend paid was $1. What is the value per share of your firms stock?

Please solve without excel