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

(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.