9. Souza Sailing, Inc. has earnings of $3 per share and is expected to pay consecutive dividends of $2.00, $2.50, and $3.00 over the next three years, starting next year. The growth rate for Souza's earnings is expected to be 8 percent per year for the next four years. If the required rate of return on Souza's stock is 11 percent, and the expected PE ratio for similar companies is expected to be 14, use the adjusted (combined) method to value Souza's stock. The stock value is

Souza Sailing, Inc. has earnings of $3 per share and is expected to pay consecutive dividends of $2.00,$2.50, and $3.00 over the next three years, starting next year. The growth rate for Souza's earnings is expected to be 8 percent per year for the next four years. If the required rate of return on Souza's stock is 11 percent, and the expected PE ratio for similar companies is expected to be 14 , use the adjusted (combined) method to value Souza's stock. The stock value is