BONUS QUESTION:

ACME company just went IPO. ACME won't pay a dividend for the first $2$ years, then expects to pay a $$5$ dividend at the end of the third year. The dividend will then grow rapidly by $50\%$ for the next $3$ years. Dividends will then grow by $6\%$ per year forever. If investors require a $12\%$ rate of return, what is the stock price of ACME company today?

$$125\mathrm{.}95$

$$57\mathrm{.}65$

$$194\mathrm{.}56$

$$174\mathrm{.}31$

$$225\mathrm{.}87$