IBM currently pays a dividend of $1.60 per year. A current price is $118.36. An analyst makes the following estimates: The current required return on equity for IBM is 12 percent. Dividends will grow at 14 percent for the next two years, 12 percent for the following ve years, and 10.2 percent thereafter. Based only on the information given, estimate the value of IBM using a three-stage DDM approach.