Company Z-prime’s earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 2. In year 3 and afterward, it will pay out all earnings as dividends. Assume next...

Company Z-prime’s earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 2. In year 3 and afterward, it will pay out all earnings as dividends. Assume next year’s dividend is $7, the market capitalization rate is 4.5% and next year’s EPS is $16. What is Z-prime’s stock price?