Question: Industrial Light and Magic, Inc., is a young start - up company. No dividends will be paid on the stock over the next 7 years

Industrial Light and Magic, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $5 per share dividend in 8 years and will increase the dividend by 4 percent per year thereafter. If the required return on this stock is 11 percent, what is the current share price? (Do not round your intermediate calculations.)

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