Company Z-prime’s earnings and dividends per share are expected to grow by 3% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year’s dividend is $5, the market capitalization rate is 9% and next year’s EPS is $12. What is Z-prime’s stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $