Nonconstant Dividend Growth Valuation A company currently pays a dividend of $1.6 per share (D0 = $1.6). It is estimated

[answerhappygod]

Nonconstant Dividend Growth Valuation
A company currently pays a dividend of $1.6 per share
(D0 = $1.6). It is estimated that the company's
dividend will grow at a rate of 20% per year for the next 2 years,
and then at a constant rate of 5% thereafter. The company's stock
has a beta of 1.3, the risk-free rate is 9%, and the market risk
premium is 4.5%. What is your estimate of the stock's current
price? Do not round intermediate calculations. Round your answer to
the nearest cent.
17.06 IS NOT CORRECT