2. 25.

Two-stage dividend growth model [LO 8.1] Dumbleyung Country Club is experiencing rapid growth. The company expects dividends to grow at 18 per cent per year for the next 11 years before levelling off at 4 per cent into perpetuity. The required return on the company’s shares is 10 per cent. If the dividend per share just paid was $1.94, what is the share price?