QUESTION $2$

W$.$B$.$ Jones Heating & Air is experiencing extraordinary growth of $25\%$ per year due to recent increased demand for its services. Economists believe that this demand will wane over time, and after two years, the company's growth rate will drop to $5\%$ per year, where it will remain indefinitely.

The firm recently paid total dividends of $$7$ million, and their required rate of return is $15\%.$ If there are $10$ million shares outstanding, what is the value $($per share$)$ of W$.$B$.$ Jones Heating & Air's stock?

None of the above are correct.

$$10\mathrm{.}27$

$$5\mathrm{.}08$

$$8\mathrm{.}75$

$$4\mathrm{.}35$