Devon Oil Services suffered a large loss and suspended its dividend. Suppose you do not expect Devon to resume paying dividends until December 1,

2021.

You expect Devon's annual dividend in

2021

to be

$0.45,

and you expect the annual dividend to grow by

4.6%

per year thereafter. If Devon's equity cost of capital is

11%,

what is your expected value of a share of Devon for December 1,

2018?

Question content area bottom

Part 1

The expected value of a share of Devon on December 1,

2018,

is

$enter your response here.

(Round to the nearest cent.)