Louie has found a compeling chainsaw company he would like to invest in. The firm paid a dividend of $2.25 last year, and Louie's research shows the start-up company should be able to grow that dividend by 10% for the next 2 years at which point it would slow to a constant rate of 3%.
How much would Louie be willing to pay for the stock today if his required return is 11%?