Question $5$

The current dividend of York Company is $$2$ and is expected to grow at $10\%$ for five years.

After the first five years, the growth rate of the dividends is expected to grow at a constant

$5\%$ into the future. The cost of equity is estimated at $9\%.$

What is the number that you need to use in CF$5$ in Excel or a Financial Calculator when

discounting the cash flow?

$$84\mathrm{.}55$

$$87\mathrm{.}77$

$$65\mathrm{.}23$