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 $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $3 per share), dividend growth is expected to settle down to a more moderate long-term growth rate of 4%. If the firms investors expect to earn a return of 12% 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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