D1= .77
D2=.347
D3=.9317
D4=1.02487
Value of Future Cash Flows
A firm recently paid a $0.70 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $32.
If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)