Babbalu Inc. just paid a dividend of $1 per share. Babbalu expects to increase its annual dividend by 20% per year for the next two years and by 15% per year for the following two years. Starting in...

Babbalu Inc. just paid a dividend of $1 per share. Babbalu expects to increase its annual dividend by 20% per year for the next two years and by 15% per year for the following two years. Starting in year 5, Babbalu is expects to pay a constant annual dividend of $3 a share. What is the current value of this stock if the required rate of return is 12%?