Question: A stock will not pay a dividend for four years and then will pay a $7 dividend (D5) that will grow constantly forever at 5%.

A stock will not pay a dividend for four years and then will pay a $7 dividend (D5) that will grow constantly forever at 5%. If the required rate of return for this stock is 10%, what is the value today? Please enter your answer in doliars (without the $ sign) to two decimals

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