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Problem $8-08$

A company had $$17$ of sales per share for the year that just ended. You expect the company to grow their sales at $6\mathrm{.}5$ percent for the next five years. After that, you expect the company to grow $4\mathrm{.}25$ percent in perpetuity. The company has a $14$ percent ROE and you expect that to continue forever. The company's net margins are $5$ percent and the cost of equity is $10$ percent. Use the free cash flow to equity model to value this stock. Do not round intermediate calculations. Round your answer to the nearest cent.

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