Problem $8-18$ Variable Growth $($LG$8-6)$

A fast$-$growing firm recently paid a dividend of $$0\mathrm{.}70$ per share. The dividend is expected to increase at a $10$ percent rate for the next three years. Afterwards, a more stable $5$ percent growth rate can be assumed.

If a $6$ percent discount rate is appropriate for this stock, what is its value today? Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Stock value