# A stock will pay no dividends for the next 3 years.  Four years from now, the stock is expected to pay its first dividend in the amount of \$2.4.  It is expected to pay a dividend of \$2.9 exactly five years from now.  The dividend is expected to grow at a rate of 6% per year forever after that point.  The required return on the stock is 15%.  The stock's estimated price per share exactly TWO years from now, P2 , should be \$______. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: \$12.34567 should be entered as 12.35).

Question

A stock will pay no dividends for the next 3 years.  Four years from now, the stock is expected to pay its first dividend in the amount of \$2.4.  It is expected to pay a dividend of \$2.9 exactly five years from now.  The dividend is expected to grow at a rate of 6% per year forever after that point.  The required return on the stock is 15%.  The stock's estimated price per share exactly TWO years from now, P2 , should be \$______.

Do not round any intermediate work, but round your final answer to 2 decimal places (ex: \$12.34567 should be entered as 12.35).