Gregory Inc. was founded 8 years ago. It has been profitable for the last 3 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.20 dividend 3 years from today, then to increase it at a relatively rapid rate for 3 years, and then to increase it at a constant rate of 7% thereafter. The forecast of the future dividend stream, along with the forecasted growth rates, is shown in the table below. With a required return of 8%, what is the stock price of Gregory Inc. one year from today? Year Growth rate Dividend 0 NA $0.00 1 2 NA NA $0.00 $0.00 3 NA $0.20 4 100% $0.40 5 75% $0.70 6 50% $1.05 7 7% $1.12