q5

Tillin Corp. is start-up company which is not paying dividends for the next 3 years. At the following year, Tillin will start paying an annual dividend of $50 per share per year until year 8 . Thereafter, Tillin will increase the dividends by 5% per year forever. The required rate of return on this stock is 20%. What is the price of this stock right after the dividend in year 8 has been paid? Do not use the $ sign. DO NOT use commas to separate thousands. DO NOT USE to decimals. 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