The stock price today can be modeled as the present value of future dividends. The challenge in using this approach is $(1)$ deciding on the right discount rate for the dividends, and $(2)$ forecasting what future dividends will be$.$ Assume you have already decided that the cost of equity is $10\%$ and are now trying to decide what the future dividends will be$.$ The company has forecast that the dividend $1$ period from today will be $$4$ per share.

You decide to use a "two$-$stage" model to value the stock. You assume the dividends will grow at $5\%$ a year after the $$4$ per share dividend expected in one year. You assume the $5\%$ growth will continue up to the $5$th year $(5$th dividend$)$ but then drop to $3\%$ a year starting with the sixth dividend. What is your forecast for the dividend in year $6?$ Select the number closest to the correct answer.