where did 3.10 come from?

2. HIJ Corporation has the following expected annual dividends for this year and the next three years: $1.60, $2.10, $2.40, and $2.55. It is anticipated that the following four years will produce annual dividend growth of 5% with subsequent steady state annual dividend growth beginning eight years from now of 2%. What is the fair market value of the firm when considering the firm's dividends if the discount rate is 8%? P= DIV $3.10(1+0.02) $3.10(1.02) $52.69 (--) (0.08 -0.02) (0.06) P. - DIV DIV DIV DIV DIV DIV DIV. DIV + + + + + + + + $1.60 $2.10 $2.40 $2.55 52.68 $2.81 $2.95 $3.10 P- (1 +0.08) * (1 +0,08) (1 +0,08) * (1 +0.08) * (1 +0.08 ) (1 + 0.08 ) * (1 +0,08) * (1 +0,08) * (1 *0,08) P-51.48 51.50 +51.91 $1.8751.82 +51.77-51.72 +51.67 $28.47 = $42.52 $52.69