Kay's Sewing Loft is expecting a period of intense growth and has decided to retain more of its earnings to help finance that growth. As a result, it is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will maintain a constant dividend of $2 a share. Last year, the company paid a $3 dividend per share. What is the market value of this stock if the required rate of return is 12.5 percent?