Question 7 Polycorp has just paid a dividend of $5.00. It is expected to pay a dividend $6.00 at the end of the rst and second year. its dividends will grow at 5.00%pa for the following ve years. Dividends are then expected to grow at 4%pa for another two years, after which they are expected to grow at 3.00%pa fOrever. Shareholders required return on equity is 12.00% pa. What is the current price of Polycorp shares? (In dollars and cents accurate to the nearest cent)