Bob Katz is interested in the following stock: current dividend is $2.50 . projected three year growth rate of 10% . growth rate after year 3 is expected to fall and remain constant at 6% Bob's required return is 12% Step 1: Present value of Dividends I Do EVIE 1 2 3 Dt PVIF PV div Step 2: Future value of stock price Step 3: Present value of future stock price Step 4: Present value of stock Solving for step 4, what would Bob Katz be willing to pay (approximately) for the stock?