Rework problem 11 with a new assumption—that dividends at the end of the first year are $1.60 and that they will grow at 18 percent per year until the end of the fifth year, at which point they will grow at 6 percent per year for the foreseeable future. Use a discount rate  of 12 percent throughout your analysis. Round all values that you compute to two places to the right of the decimal point.

a. Project dividends for years 1 through 5 (the first year is already given as $2). Round all values that you compute to two places to the right of the decimal point throughout this problem.
b. Find the present value of the dividends in part a.
c. Project the dividend for the sixth year (D6).
d. Use Formula 7–5 on page 168 to find the present value of all future dividends, beginning with the sixth year’s dividend. The present value you find will be at the end of the fifth year. Use Formula 7–5 as follows: P5 = D6∕(Ke – g).
e. Discount back the value found in part d for five years at 10 percent.
f. Add together the values from parts b and e to determine the present value of the stock.
g. Explain how the two elements in part f go together to provide the present value of the stock.