Last year Star Inc paid a dividend of $1.50 on its common stock last year. You expect the dividend will increase at 15% each year over the next three years; but after that, a normal growth rate of 5% is expected for the foreseeable future. The stock market had a return of 15% last year.

Calculate the value of Star Inc using the 2-stage DDM model, with the stock market return as the discount rate.