Bpple is a newly listed firm designing and manufacturing mobile devices. Its

new product, ICphone, is well received by the market. Financial analysts forecast that, as a result of the success of the new product, Bpple stocks dividend is expected to grow at 16% p.a. for the next two years. Thereafter, the dividend is expected to grow at 10% p.a. because new competitors are expected to enter the market and the growth of sales of ICphone will slow down. The current dividend is $4.

What is the maximum price that you would be willing to pay for this Bpple stock

if you require a 20% p.a. rate of return?