Fourth Sixth Twelfth Bank currently pays an annual dividend of $$1\mathrm{.}40$ per share. After

extensive analysis, you forecast that the Bank's stock will continue to pay the $$1\mathrm{.}40$

dividend for four years. In year $5,$ the dividend will increase to $$1\mathrm{.}60$ per share. The

dividend will remain at $$1\mathrm{.}60$ until year $12.$ In year $12,$ the dividend will increase to $$1\mathrm{.}72$

per share. Subsequently the dividend will grow at an annual rate of $1\mathrm{.}2\%.$

The following chart shows the dividend stream:

Calculate the fundamental value of a share of Fourth Sixth Twelfth stock if the appropriate

discount rate is $7\%$ per year.