Problem 8-25 Two-Stage Dividend Growth Model [LO1]

Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 8 years before leveling off at 6 percent into perpetuity. The required return on the companys stock is 15 percent. If the dividend per share just paid was $2.12, what is the stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$