Growth will transition from 15% down to 5% gradually, rather than instantaneously. If you believe that the transition will take five years, what is the value of the stock? Use three-stage and H-model valuation methods. Please show formulas in excel.
Given
Dividend 0 $0.60
Growth rate 5%
Transition growth rate 15%
Growth rate 2 5%
Period 1 length 3
Transition period length 5
Required return 9%
Current selling price $20.00