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Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO = 4.00). The dividends of Robotic Atlanta are expected to grow
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = 20) and at a rate of 10 percent the following year (that is, g2 = 10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on Robotic Atlanta stock is 13 percent, compute the current price of the stock. (Round your answer to 2 decimal places and record your answer without dollar sign or commas)
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