Image cut off, but find p8 as well.

Price the Stock Po P3 and P, for each of the three streams of dividend payouts, discount rate is 10% Year Dividend S1 Dividend S2 Dividend S3 1 $1 $2 $3 2 $1 $5 $3 3 $3 $8 $3 4 $3 $10 10% growth rate 5 $3 $15 10% growth rate 6 $3 10% growth rate 20% growth rate 7 $3 20% growth rate 8 $3 5% growth afterwards 9 $3 (no growth) Po P: Price the Stock Po P3 and P, for each of the three streams of dividend payouts, discount rate is 10% Year Dividend S1 Dividend S2 Dividend S3 1 $1 $2 $3 2 $1 $5 $3 3 $3 $8 $3 4 $3 $10 10% growth rate 5 $3 $15 10% growth rate 6 $3 10% growth rate 20% growth rate 7 $3 20% growth rate 8 $3 5% growth afterwards 9 $3 (no growth) Po P