Now, let's try to price APPL using the two-stage growth model. We will assume that APPL expects to go through a rapid expansion and fast growth over the next two years.

Assume that g1=30%, g2=4%, and r=5% and that APPL's dividends enter the second stage of growth after two years (that is, D1 and D2 grow at the rate of g1, and dividends from D3 grows at the new lower rate of g2). What is the value of stock for APPL assuming two stage growth model? Please answer in the nearest tenth.

AAPL div