Question $5$

A stock is expected to pay the following dividends: $$1\mathrm{.}3$ in $1$ year, $$1\mathrm{.}6$

in $2$ years, and $$2$ in $3$ years, followed by growth in the dividend of $5\%$

per year forever after that point. The stock's required return is $11\%.$

The stock's current price $($Price at year $0)$ should be $

Margin of error for correct responses: $+/-.10$

Rounding and Formatting instructions:

Do not enter dollar signs, percent signs, commas, X$,$ or any words in

your response. Do not round any intermediate work, but round your

final$*$ response to $2$ decimal places $($example: if your answer is

$12\mathrm{.}3456,12\mathrm{.}3456\%,$ or $$12\mathrm{.}3456,$ you should enter $12\mathrm{.}35).$