Example: A firm is expected to have 3 years of extraordinary growth during which no dividends will be paid. Beginning in Year 4, earnings will stabilize and grow at sustainable 5% rate indefinitely, and the firm will pay out 45% of its earnings in dividends. Given that earnings in Year 4 (E4) are expected to be $3.45 and the required return on equity is 10%, calculate value of this stock today. is is GGM