Question: Hello, i am confused with this question and the answer given as i have no clue on how to do it. May i have the

Hello, i am confused with this question and the answer given as i have no clue on how to do it. May i have the full working and explanations on this question please?

The Shoe Box will not pay a dividend for the next two years. The following two years, it will pay annual dividends of $1 per share. Starting in year 5, the dividends will increase by 4 percent annually. The discount rate is 8 percent. What is the value of this stock today? Select one: A. $18.18 B. $20.64 C. $22.63 D. $24.08 E. $27.09 The correct answer is: $20.64

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