PART B: SHORT ANSWER. Answer in the space provided. You must show all of your work and provide explanations where applicable to receive credit. 11. A given firm is trying to expand, and it does not currently pay any dividends. Investors expect the firm to pay a dividend of $2.50 three years from today. The dividend is expected to grow at a rate of 20% per year in years 4 and 5. After year 5, the dividend is expected to grow at a constant rate of 10% per year thereafter. If the required return is 12%, what is the value of the stock today? (15 points)