Period 0 1 2 3 4 5 Date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 growth rate 5% 5% ke 14% 14% 14% 14% Div 0 0 0.442 ? 0.476 P2020 = 5.286 DCF 0 0 0.298 ? 0.388 3.873 4.416 ? 5.739 P 12/31/2017 Compant ABC has not yet begun to pay dividends. However, a cash dividend of $0.442 per share is forecasted for 2020 The dividend is expected to grow by about 2.5% in 2021, and then at a constant rate of 5% rate there after. ABC's cost of equity is 14%. Apply the nonconstant dividend growth model to value ABC's stock at P = 12/31/2017