Stock Valuation using a Dividend Discount Model Gillette Corporation is expected to grow its dividends and earnings at various rates. The company just paid a cash dividend of $2.25 per share. The company expects to grow its dividend at 8% per year for each of the next two years, then 10% each year for each of the following three years, after which the company expects to grow at a constant rate of 12% per year indefinitely.

If the required rate of return on Gillette's common stock is 16%, then what is the Fair Market Value (FMV) of the stock now? Show a timeline of the cash flows. Show all work.