Hi,I need help to explain the steps to go about this question

| Summer 2 2012, Q1 Part b. Cheers Inc. had earnings per share of $5 as of December 31, 2009. Earnings were expected to grow at 15% per year for the following five years. Earnings growth will be 6% per year for the next six years (that is, from January 1, 2015 through to December 31, 2020). After December 31, 2020, earnings will start declining at the rate of 2% per year in perpetuity. Cheers Inc. will not pay any dividend up to and including December 31, 2013. Starting January 1, 2014 the firm will pay 50% of its earnings as dividends for the next 6 years (Thus the first dividend will be paid out on 31st of December 2014). Starting on December31, 2020, Cheers Inc. will begin to pay out 80% of its earnings in dividends. This payout ratio is expected to continue for all foreseeable future. Assume that the required rate of return on Cheers Inc. stock is 10% (EAR). What should be the price of Cheers' share on December 31, 2012? COMM 308- Tutorial Session #11 13