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11. Problem 8-13 (Nonconstant Growth Stock Valuation) Nonconstant Growth stock Valuation Simpkins Corporation does not...

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11. Problem 8-13 (Nonconstant Growth Stock Valuation) Nonconstant Growth stock Valuation Simpkins Corporation does not pay any dividends because it is expanding rapidy and needs to retain all of its earnings, However. investors ekpect Simpkins to begin paying dividends, wath the first dividend of \$2.00 coming 3 years from today. The dividend should grow rapidly - at a rate of 80\% per year - during Years 4 and 5 . After Year 5 , the company should grow at a constant rate of 9% per year. If the required return on the stock is 16%, what is the value of the stock today (assume the market is in equalbrium with the required return equal to the expected return)? oo not round intermediate calculations. Round your answer to the nearest cent. 5

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