A mid-sized US company in the utilities sector with a required rate of return of 10%. Jason and her team believe that because of a recent restructuring, the company is unlikely to pay dividends for the next three years. The team expects Mercury to pay an annual dividend of US$1.72 per share beginning four years from now, however. Thereafter, the dividend is expected to grow indefinitely at 4% even though the current price implies a growth rate of 6% during this same period.

2. Jason and her team estimate that the current value of Company Mercury would be ___________.