Problem 6-17

Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $3.6 per share dividend in 12 years, and you expect dividends to grow perpetually at 4.6 percent per year thereafter. If the discount rate is 14 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price

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