Assume that the average firm in your company's industry is expected to grow at a constant...

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Assume that the average firm in your company's industry isexpected to grow at a constant rate of 5% and that its dividendyield is 8%. Your company is about as risky as the average firm inthe industry and just paid a dividend (D0) of $2. You expect thatthe growth rate of dividends will be 50% during the first year(g0,1 = 50%) and 25% during the second year (g1,2 = 25%). AfterYear 2, dividend growth will be constant at 5%. What is theestimated value per share of your firm’s stock? Do not roundintermediate calculations. Round your answer to the nearestcent.

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Assume that the average firm in your company's industry isexpected to grow at a constant rate of 5% and that its dividendyield is 8%. Your company is about as risky as the average firm inthe industry and just paid a dividend (D0) of $2. You expect thatthe growth rate of dividends will be 50% during the first year(g0,1 = 50%) and 25% during the second year (g1,2 = 25%). AfterYear 2, dividend growth will be constant at 5%. What is theestimated value per share of your firm’s stock? Do not roundintermediate calculations. Round your answer to the nearestcent.