Problem:
Chartreuse County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 18 percent per year for the next 11 years before leveling off at 5 percent into perpetuity. The required return on the company's stock is 12 percent.
Required:
Question: If the dividend per share just paid was $1.94, what is the stock price?
Note: Show supporting computations in good form.