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 $1.25. Youexpect that the growth rate of dividends will be 50% during thefirst year (g_0,1 = 50%) and 20% during the second year(g_1,2 = 20%). After Year 2, dividend growth will beconstant at 5%. What is the estimated value per share of yourfirm’s stock? Do not round intermediate calculations. Round youranswer to the nearest cent.

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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 $1.25. Youexpect that the growth rate of dividends will be 50% during thefirst year (g0,1 = 50%) and 20% during the second year(g1,2 = 20%). After Year 2, dividend growth will beconstant at 5%. What is the estimated value per share of yourfirm’s stock? Do not round intermediate calculations. Round youranswer to the nearest cent.