Problem $7-31$ Nonconstant Growth $($LO$2)$

Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $$1$ per share

dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $$1$ a year for another $2$

years. After the third year $($in which dividends are $$3$ per share$),$ dividend growth is expected to settle down to a more moderate long$-$

term growth rate of $5\%.$ If the firm's investors expect to earn a return of $15\%$ on this stock, what must be its price?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Current price