Analysts project that the Dutton Corporation will end the year with an EPS of $1.00. The firm is expected to have two periods of high growth before it slides into a stable terminal growth rate as outlined in the table below. Initially, the firm retains a high percentage of earnings, as noted by the plowback ratio, but then declines in two steps to a steady state value. Using a multi stage growth model and a required rate

of return of 13%, what is the value of a share of this company's stock?

Duration Growth Plowback Phase in years Rate Ratio

1- 5                16%              70%                              
2- 4                11%             55%
3- Perpetual 4%                40%