Common stock value: Variable growth Home Place Hotels Inc. is entering into a $3-$year remodeling and expansion project. The construction will have a

imiting effect on earnings during that time, but when completed, it should allow the company to enjoy much improved growth in earnings and dividends. Last

rear, the company paid a dividend of $$3\mathrm{.}40.$ It expects zero growth in the next year. In years $2$ and $3,5\%$ growth is expected, and in year $4,15\%$ growth. In year

and thereafter, growth should be a constant $10\%$ per year. What is the maximum price per share that an investor who requires a return of $14\%$ should pay for

Home Place Hotels common stock?

Answers $($insert your answers in the highlighted cells; use cell references, equations, and functions wherever possible$)$

Year $1$ growth rate

Year $2$ growth rate

Year $3$ growth rate

Year $4$ growth rate

Constant growth rate

Required return

Previous dividend paid

Dividend expected in year $1$

Dividend expected in year $2$

Dividend expected in year $3$

Dividend expected in year $4$

Dividend expected in year $5$

Present value of $D_1$

Present value of $D_2$

Present value of $D_3$

Present value of $D_4$

Stock value at end of year $4$

Present value of year $4$ stock value

Stock value today