Stock Valuation with Non-constant Growth of the Dividend using DDM. The Auto Parts Company has just been formed. It is expected to experience zero growth for the next two years as it identifies its market and acquires inventory. The company, however, expects to grow at an annual rate of 5 percent in the third year and, beginning with the fourth year, projects a 10 percent growth rate that it will sustain thereafter. The first dividend to be paid of D1 at the end of the first year is expected to be 50 cents per share. The company expects to pay dividends at its growth rate and investors require a return of 15 percent on similar stocks. What is the current price of the stock? (Hint: calculate the future cash flows, including the horizon value or terminal value and then calculate the fundamental value using NPV in excel or CF keys on calculator or calculating and adding the pv of each the Lump Sum)(