Equity Valuation

This question is tripping me up. The solution says that I should be using the TV at the end of year 2 and not year 3? The question asks for the value per share.

Steve is valuing another company, Informatica Inc. The company has not paid any dividends in its history, but the management has announced that the company will start paying a dividend after two years i.e. the first dividend will be received at the end of the third year from now. The dividend payout ratio is expected to remain constant at 40%, and the company is not expected to raise any capital to grow i.e. the company will grow from the internal generated retained earnings. In the recent year, the company has earned $2.4 per share. The company’s ROE is 16% and is expected to remain at these levels. The cost of equity for the company is 14%.

The DDM model is D1 / (r-g). Therefore, TV is year 2 because D1 is year3.