Is my method correct in solving the question below?

Butch Jones Recruiting, Inc. paid a 3 dividend last year.It is expected to grow at only 4% this year, due to heavy funding needs.After that, growth will increase to 10% per year forever.If owners need to earn 18%, what is fair value?

My method:

D1=D(1+g) D1=3(1.04)=3.12

PV = D1/(r-g2) = (3.12/(.18-.10) = 3.12/.08 = 39

Or the other method:

D(1)= D(0) x (1+g)

3 (1.04)= 3.12

D(2)= D(1) x (1+g)

3.12 (1.10)= 3.432

P(1)= D(2)/ (r-g)

3.432/ (.18-.10)

3.432/.08= 42.90

PV= D(1)/ (1+r)

3.12/1.18= 2.644

PV= P(1)/ (1=r)

42.90/1.18= 36.36

2.644 + 36.36

Fair value= 39