Assume Highline Company has just paid an annual dividend of

$0.96.

Analysts are predicting an

11.0%

per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of

5.2%

per year. If Highline's equity cost of capital is

8.5%

per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is

Assume Highline Company has just paid an annual dividend of $0.96. Analysts are predicting an 11.0% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.2% per year. If Highline's equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $ . (Round to the nearest cent.)