Tenomar Corp. is about to experience a 5 year restructuring plan and will not pay dividends during that time. However, management promises that this initiative will be so successful that the company can then pay out a $6.75 per share dividend that will then grow at a rate of 10% per year. What is the maximum price you are willing to pay for Tenomars stock if your required annual return is 15%?

Please help me solve this step by step and kindly explain your answers.

Note: I am stuck getting the next year dividends is it 6.75 * growth rate @ 10% or do you multiply @ 15 % from the annual return ?

My answer using the 15% = $155.25 investors willing to pay for this stock.

Please briefly explain your answer.

Thank you.