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What is the current share price

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A young start-up company and therefore is not paying any dividends on the stock over the next 5 years. At the end of year 5, the company will pay a $3 dividend. The company will pay a $3.25 per share dividend at the end of year 6 and thereafter it will increase the dividends by 4% per year forever. If the required rate of return on this stock is 11%, what is the current (today's) share price? Show your answer to the nearest $.01. Do not use the $ or , signs in your answer.

Reference no: EM133056088

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