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Mohammad is considering purchasing the common stock of Qualcomm Industries, a rapidly growing Chip Manufacturer. He finds that the firm s most recent annual dividend

Mohammad is considering purchasing the common stock of Qualcomm Industries, a rapidly growing Chip Manufacturer. He finds that the firms most recent annual dividend payment was $7 per share. Mohammadestimates that these dividends will increase at a 10% annual rate over the next 4 years and at a rate of 6% for year 5 & 6. At the end of the 6 years he expects the firms mature product line to result in a slowing of the dividend growth rate to 4% per year for the foreseeable future. Mohammads required return is 12.5%. Calculate the price of the stock.

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