Problem: A fast-growing company is currently reinvesting all of its profits into new project (that is, it is retaining all of its earnings, and paying no dividends). You expect that this company will maintain this high-growth phase, with no dividends, for the next ten years. Eleven years from now, you believe the company will pay its first dividend, of $4.00 per share. Thereafter, you believe the company will maintain a 4% rate of dividend growth forever. If the required return for this companys stock is 11%, what would you be willing to pay for a share of this stock today?

Answer: $20.12

Can you explain how they got this answer?