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Show me the math please on this question: Cherry Auto Sales just opened and does not expect to pay a dividend during its first year.

Show me the math please on this question: Cherry Auto Sales just opened and does not expect to pay a dividend during its first year. At the end of its secondyear, Cherry's owners expect to pay a$2.00 dividend and plan to increase it7% annually. If the required return is20%, what shouldCherry's stock pricebe?

I know the answer is $12.82 I just can't figure out how it is computed.

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