1. Paulina Cocoa Company currently pays a dividend of 1.60 per share on its common stocks. The company expects to increase the dividend at a 20 percent annual rate for the first three years and at a 13 percent rate for the next three years and grow the dividend at a 7 percent rate thereafter. This phased- growth pattern is in keeping with the expected life cycle of earnings. You require a 16 percent return to invest in this stock. What is the most you will pay for this stock?