P 7-10 Common stockvalue: Constant growth

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

Year Dividend per share

2019 $2.47

2018 2.24

2017 1.82

2016 1.23

2015 1.56

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 ofSeagate's stock immediately after it paid its 2019 dividend of $2.47.

The value ofSeagate's stock is $___ . (Round to the nearestcent.)