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Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019 Seagate

Common stock value: Constant growth

Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019 Seagate paid the following per-share dividends:

Year

Dividend per share

2019

$2.56

2018

$2.23

2017

1.83

2016

1.17

2015

1.54

Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 18% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.56.

The value of Seagate's stock is?

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