Question: AAA company does not expect to pay any dividends for the next two years. Three years from now they hope to pay $2.25 a share

AAA company does not expect to pay any dividends for the next two years. Three years from now they hope to pay $2.25 a share and increase that amount by 100 percent per year for the following two years. After that, the company expects to pay a constant dividend of $1.50 a share. What is the value of this stock today if the required return is 8 percent?

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