ABC Company's common stock is expected to pay a $9.50 dividend in the coming year. If investors require a 17% return and the growth rate in dividends is expected to be 7%, what should the market price of the stock be? Round to two decimal places.

To answer the question:

(1) Describe and interpret the assumptions related to the problem.

(2) Apply the appropriate mathematical model to solve the problem.

(3) Calculate the correct solution to the problem.