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Tom Ford Inc. has been very successful in the past years. Last year, it paid a dividend of $12. It expects no growth in the

Tom Ford Inc. has been very successful in the past years. Last year, it paid a dividend of $12. It expects no growth in the next year. In years 2 and 3, 4% growth is expected. The company is going to reinvest all its earnings in year 4 and 5. In year 6, it is going to pay $5 dividend. In year 7 and thereafter, growth should be a constant 9% per year. What is the maximum price per share for an investor if the opportunity cost is 10%? Will you buy the share if the market price is $350?

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