ABC Corporation has just paid a dividend of $3 per share. Youan experienced analystfeel

quite sure that the growth rate of the company's dividends over the next ten years will be 15

percent per year. After ten years you think that the company's dividend growth rate will slow to

the industry average, which is about 5 percent per year. If the cost of equity for ABC is 12

percent, what is the value today of one share of the company?