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Problem 8-33 Non-Constant Growth (LO1) Holyrood Co. just paid a dividend of $1.80...

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Finance

Problem 8-33 Non-Constant Growth (LO1)
Holyrood Co. just paid a dividend of $1.80 per share. The company will increase its dividend by 20% next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5% dividend growth, after which the company will keep a constant growth rate forever. If the required return on Holyrood stock is 13%, what will a share of stock sell for today? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Stock price $

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