Question $1$

Synovec Co$.$ is growing quickly. Dividends are expected to grow at a rate of $25$ percent for the next two years, with the growth rate falling off to a constant $5$ percent thereafter. The required return is $11$ percent, and the company just paid a dividend of $$2\mathrm{.}00.$

a$)$ Draw a timeline that represents the given scenario.

b$)$ Draw an equivalent timeline by using the constant growth formula to replace the payments after the second year with a single payment at time $3.($Hint: $P_t=\frac{D_{t+1}}{R-g})$

c$)$ Based on the timeline, what is the current share price?