You are considering investing in Peter's Plants. The company will pay dividends for the next 3 years. 2022 $0.25, 2023 $0.35, 2024 $0.42. You predict 2024 EPS to be $2.12 and the P/E ratio to be 16. Your required rate of return for this stock is 9.22%, what is the current value of the stock? (Use the appropriate formula above and remember to show all of your work.)

Variable growth model Value of a share of stock = DCF model Value of stock = d (1+r) d (1+r) D (1+r) D (1+r) Dn (1+r)n Dn (1+r)n (EPS X PE) (1+r)n Dn(1+g) (r-g) (1+r)n