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Nonconstant Growth ( Calculator ) Osmium Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

Nonconstant Growth (Calculator)
Osmium Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect the company to begin paying dividends, beginning with a dividend of $2.00 coming 2 years from today. The dividend should grow rapidly-at a rate of 25% per year-during Years 3 and 4; but after Year 4, growth should be a constant 5% per year. If the required return on Osmium is 13%, what is the value of the stock today?
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