If a company currently does not pay dividends and they want to begin
paying dividends in 3 years, the first dividend will be $1.00 and they
are expected to grow 5% after that.  If the required return is 15%
what would you pay for the stock today.

Hello.

The formula for present value of a delayed growing perpetuity is:
PV = [C1 / r - g ] *  [(1 / 1 + r)^(t - 1)]
where C1 is the first cash payment ($1.00 here), r is the discount
rate (15% here), g is the growth rate (5% here), and t is the time
period (year 3 here).
See my previous answer in part (2) here:
http://answers.google.com/answers/threadview?id=168200

So:
PV = [C1 / r - g ] *  [(1 / 1 + r)^(t - 1)]
PV = [1 / .15 - .05 ] * [(1 / 1 + .15)^(3 - 1)]
PV = [1 / .10 ] * [(1 / 1.15)^2]
PV = [1 / .10 ] * [(0.869565)^2]
PV = [10] * [.756] = 7.56

Thus, you should be willing to pay up to $7.56 for the stock today.

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search strategy
"delayed growing perpetuity"

I hope this helps.

gotta say. He's good. 

Talk about hitting the nail on the head.

Not sure i would of done all that for 5 bux. :)