Mack Industries just paid a dividend of $1.00 per share (i.e., D₀ = $1.00). Analysts expect the company's dividend to grow 30 percent this year, and 20 percent in second year. After two years the dividend is expected to grow at a constant rate of 5 percent. The risk free rate is 5% and expected market risk premium is 7% and the firm is twice as risky as market. If the current price of the company's stock is $25.00, what is the expected stable constant growth rate after two years? (8 points)

Hint: Goal Seek from What-If Analysis