Question: 8. A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend

8. A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.4. It is expected to pay a dividend of $2.8 exactly five years from now. The dividend is expected to grow at a rate of 7% per year forever after that point. The required return on the stock is 12%. The stock's estimated price per share exactly TWO years from now, P2 , should be $______. Margin of error for correct responses: +/- .10

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