Question: Alfa is a start-up company who is using all its cash to growth so it does not plan to pay dividends for the next 4 years. The company then plans to start paying annual cash dividends starting in year 5 for $5.00 for 12 years. Thereafter, the company will assume a constant growth dividend policy and the estimated growth rate in dividends forever after that point is 2%. The price of the stock is set to yield a return of 11%. What is the price of this stock today?