7-13

-13. Ocala Company's stock is currently selling for $18 per share. At the end of the year, the company plans to pay a dividend equal to $2.34 per share. For the remainder of the company's life, dividends are expected to grow at a constant rate, and investors are expected to require a 17 percent return to invest in Ocala's stock. What should be the value of Ocala's stock five years from now? (LO 7-2)