Question $8$

A stock will pay no dividends for the next $3$ years. Four years from

now, the stock is expected to pay its first dividend in the amount of

$$2\mathrm{.}1.$ It is expected to pay a dividend of $$3$ exactly five years from

now. The dividend is expected to grow at a rate of $8\%$ per year forever

after that point. The required return on the stock is $12\%.$ The stock's

estimated price per share exactly TWO years from now, $P_2,$ should be

$

Margin of error for correct responses: $+/-.10$

Rounding and Formatting instructions:

Do not enter dollar signs, percent signs, commas, $x,$ or any words in

your response. Do not round any intermediate work, but round your

response to $2$ decimal places $($example: if your answer is

$12\mathrm{.}3456,12\mathrm{.}3456\%,$ or $$12\mathrm{.}3456,$ you should enter $12\mathrm{.}35).$