Napa Auto Parts last dividend was $1 and the corporation expects to experience no growth for next three years. However, Napa will grow at an annual rate of 10 percent between the 3rd and 4th year and between the fourth and 5th years. Starting from the end of the fifth year, Napa will grow at a 5% rate, thereafter.

The required rate of return for Napa is 12% for the first 3 years, 8% for years 4 and 5, and 10% for years 6 onwards? What is the current price (t=0) of Napa shares?
possible answers
a)18.02 b)18.52 c)20.45 d)21.02 e)21.52
f)21.89 g)20.02 h)22.12 i)22.89 j)19.37