The following equation is the Dividend Discount Model, also known as the 'Gordon Growth Model' or the 'Perpetuity with growth' equation.
P0=d1r−g
A stock pays dividends annually. It just paid a dividend, but the next dividend (d1) will be paid in one year.
According to the DDM, what is the correct formula for the expected price of the stock in 2.5 years?