10. Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 4 years. At the end of year 4, the company will pay a $3 dividend. The company will pay a $1.70 per share dividend at the end of year 5 and thereafter it will increase the dividends by 5% per year forever. If the required rate of return on this stock is 7%, what is the current (todays) share price? Show your answer to the nearest $.01. Do not use the $ or , signs in your answer.

Your Answer: