discount rate of 18%

(please dont use excel)

Problem 3: (8 marks) SuperGrowth is a relatively young tech company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year 6 it will pay a dividend of $2. This dividend will grow at a rate of 25% for the next 4 years. After that SuperGrowth pledges to maintain a constant 5% growth rate in dividends, forever. How much will you pay for a share of SuperGrowth today