Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 28 pe

Question

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 11 percent, and the stock currently sells for $82 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

My answer is 2.15 and incorrect. Please Help! I have been stuck ! :(

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 11 percent, and the stock currently sells for $82 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

82 = (D*1.28/1.11)+(D*1.28^2/1.11^2)+(D*1.28^3/1.11^3)+(D*1.28^3*1.18/1.11^4)+(D*1.28^3*1.18*1.05/((.11-.05)*(1.11^4)))

82/D = (1.28/1.11)+(1.28^2/1.11^2)+(1.28^3/1.11^3)+(1.28^3*1.18/1.11^4)+(1.28^3*1.18*1.05/((.11-.05)*(1.11^4)))

82/D = 34.1735

D = 82/34.1735843465= $2.39951

projected dividend = 2.39951*1.28 = $3.07

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