The required return on an investment is 11 percent you


The required return on an investment is 11 percent. You estimate that firm X's dividends will grow as follows:

Year    Dividend

1          $1.20

2            2.00

3               3.00

4            4.50

For the subsequent years you expect the dividend to grow but at the more modest rate of 9 percent annually. What is the maximum price that you should pay for this stock? Round your answer to the nearest cent.

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