q2

(Estimated time allowance: 8 minutes) Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 8 years. At the following year, the company will start paying a $16 per share dividend and thereafter it will increase the dividends by 5% per year forever. If the required rate of return on this stock is 17%, what is the current (today's) share price? Do not use the $ sign. DO NOT USE commas to separate thousands. Use 2 decimals and round to the nearest cent. For example if you obtain \$1,432.728 then enter 1432.72; if you obtain $432 then enter 432.00