Starbucks Corporation has just paid a dividend of $$1.$ In Years $1$ through $3,$ they project to pay

$$3\mathrm{.}70,$$$3\mathrm{.}75,$ and $$3\mathrm{.}77$ in dividends, respectively. After Year $3,$ the growth rate of dividends will

stabilize and remain at $2\mathrm{.}5\%$ forever. What is the intrinsic value of the firm's stock today? The

required rate of return is $8\%.$

Draw the timeline, label the cash flows and growth rates, show with arrows whether you are

compounding or discounting.

Show the formulas you would use to solve the problem as if you did not have a

financial calculator on hand. Round all steps to four decimals.