please explain why i am missing the connection from the last part of the equation on the right somehow equaling 105? and than the answer is just 88.47, i need a thorough explanation.

2. Westerfield Co. is expected to pay a dividend of $1.10 next year (year 1), $2.95 the year after (year 2), and $3.50 the year after that (year 3). After that, the firm expects to maintain a constant dividend growth rate of 5 percent per year. What is the value of this stock today if the required return is 8.5 percent? 9=5% D. = 31.10 D=$2.95 Dy = $3.50 0 2 3 8- 8.5% Lo TV:- Dy D3 (itg) R-g R-g 3.50 (1.05) ,085 -,05 = #105 Po= $88.47