Temp Corp. just paid a $2.25 dividend. Because of a new invention, the dividend is expected to rise at a 35% rate for two years, then a 15% rate for two more years. Then, competition will flood the market and the firm will pay a $32 liquidating dividend and cease to exist. If you require a 12% return to compensate for the risk, what is a share of the stock worth?

List: g1, g2, g3, g4, k

Solve for (show all work):

D0, nper, PV

D1, nper, PV

D2, nper, PV

D3, nper, PV

D4, nper, PV

D5

P0