Question: Now suppose Could I Industries expects to grow erratically over the next 4 years. It omitted its dividend this year. It plans to pay no

Now suppose Could I Industries expects to grow erratically over the next 4 years. It omitted its dividend this year. It plans to pay no dividends in years 1 & 2, and then pay dividends of 1.10 and 2.20 in years 3 and 4, respectively. Beginning in year 5 it expects its dividends to grow 3.5 percent per year into perpetuity. Because of this erratic growth, investors are demanding a return of 18%. What is the value of the stock today?

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