Question: Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $2.2 per share dividend in 8 years, and you

Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $2.2 per share dividend in 8 years, and you expect dividends to grow perpetually at 3.2 percent per year thereafter. If the discount rate is 14 percent, how much is the stock currently worth? Round to two decimal points and use the two-stage dividend growth model.

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