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Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years,...

Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11.00%, what is your estimate of the stock's current value? Use the dividend values provided in the table below for your calculations. Do not round your intermediate calculations.

Year 0 1 2 3 4 5 6
Growth rate NA NA NA NA 90.00% 45.00% 8.00%
Dividends $0.000 $0.000 $0.000 $0.250 $0.475 $0.689 $0.744

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