What is the price in year $3?$

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Formula : P$3=$D$3/(1+$g$)/($R $$g$)$

Suppose a company starts to pay dividends for the next three year. After the third year, the dividend will grow at a constant rate of $5\%$per year. The required return is $7\%.$

Year Expected Dividend

$13\mathrm{.}5$

$24\mathrm{.}5$

$35\mathrm{.}5$

$1]$What is Value of the dividends that will be paid between now and then. So the price in three year is$.$

P$3=$D$3/(1+$g$)/($R $$g$)$

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$2]$What is the total value of stock as the present value of the first three dividends plus the PV of the price at Time $3,$P$3$

Po $=$D$1/(1+$R$)1+$D$2/(1+$R$)2+$D$3/(1+$R$)3+$P$3/(1+$R$)3$