Stock XYZ paid a dividend of $2.80 in the year just ended which leads you to the following projections: Dividends will grow at a rate of 14% next year, 12% the year after, 10% the following year, and then level off at a constant rate of 5% indefinitely. The fair required return on Stock XYZ common stock is 7.4%.

Use the non-constant dividend valuation model to value the stock.