Question $4(1$ point$)$

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You are considering purchasing the common stock of Warren Industries, a rapidly growing boat manufacturer. You find that the firm's most recent $(2012)$ annual dividend payment was $$1\mathrm{.}50$ per share. You estimate that these dividends will increase at a $10\%$ annual rate, $g1,$ over the next $3$ years $(2013,2014,$ and $2015)$ because of the introduction of a hot new boat. At the end of the $3$ years $($the end of $2015),$ she expects the firm's mature product line to result in a slowing of the dividend growth rate to $4\mathrm{.}000\%$ per year, g $2,$ for the foreseeable future. Victoria's required return, rs$,$ is $14\mathrm{.}000\%.$ Estimate the current $($end$-$of$-2012)$ value of Warren's common stock.

NOTE: Enter the value to two decimal places without the dollar sign. For example, if your answer is $$3\mathrm{.}457,$ enter $3\mathrm{.}46$

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