Question: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.50coming 3 years from today. The dividend should grow rapidly--at a rate of 80% per year--during Years 4 and 5. After Year 5, the company should grow at a constant rate of 7% per year. If the required return on the stock is 16%, what is the value of the stock today (assumethe market is in equilibrium with the required equal to the expected return)?

The answer in the back of the book is $10.76 however i can't figure out how to get it.

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