Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy....
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Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $3 per share dividend to be paid a year from now, the first dividend since the crisls. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $5 per share), dividend growth is expected to settle down to a more moderate long. term growth rate of 5%. If the firm s investors expect to earn a return of 15% on this stock, what must be its price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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