Assume that the average firm in your company’s industry is expected to grow at a constant rate of 7 percent and its div

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Assume that the average firm in your company’s industry is
expected to grow at a constant rate of 7 percent and its
dividend yield is 8 percent. Your company is about as risky
as the average firm in the industry , but it has just
successfully completed some R&D work that leads you to
expect that its earnings and dividends will grow at a rate of
40 precent ¨( D1= D0(1+g)= D0=(1.40). this year and 20
percent the following year, after which growth should match
the 7 percent industry average rate. The last dividend paid
(D0) was$1. What is the current value per share of your
firm’s stock ?