Question $4$

$3$ pts

Company XYZ does not currently pay a dividend. However, their

earnings have been growing at a very high rate. Thus, they are expected

to begin paying a dividend, starting $7$ years from today. Expectations

are that the first dividend will be $$2\mathrm{.}8$ per share. The dividend is then

expected to grow at $26\%$ per year for $6$ years, and at the end of that

super$-$normal growth period, the stock will enter a slower growth

perpetuity phase of $4\%$ per year. The required return on Agilent stock

is $14\%.$ What should be their current stock price? $($Please make sure to

not do any intermediate rounding and keep at least $6$ decimal points

throughout solving this problem. Round your final answer to three

decimal places. For example $1\mathrm{.}23450$ or $1\mathrm{.}23463$ will be rounded to

$1\mathrm{.}235$ while $1\mathrm{.}23448$ will be rounded to $1\mathrm{.}234)$