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14. Problem 8-05 (Nonconstant Growth Valuation) Nonconstant Growth Valuation A company currently pays a dividend...

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14. Problem 8-05 (Nonconstant Growth Valuation) Nonconstant Growth Valuation A company currently pays a dividend of $2.4 per share (D0=$2.4). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, and then at a constank rate of 5% thereafter. The company's stock has a beta of 1.5 , the risk-free rate is 7%, and the market risk premium is 2%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. 5

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