TDAC has just paid $$3$ per share. The required rate of return for the stock is $9\%.$ It had a difficult few

years and so the Board of Directors decided to cut the dividend by $3\%$ every year, starting the next

dividend to be paid. What is the price of the stock in the scenario? There are some optimist investors

too. They think the decrease will be for the next $2$ years only and after that, the dividend will again grow

at a constant growth rate of $5\%$ thereafter. The required rate of return for the stock is again $9\%.$ What is

the price of the stock for an optimist investor?