Salerno Industries recently paid a $2.62 dividend per share. The dividend of the company is expected to grow by 30 percent next year, 25 percent the following year, and 20 percent the year after before growing at constant rate of 6 percent growth that continue forever. Salerno Industries beta is 1.2382, the risk-free rate of interest is 1.6 percent, and the rate of return on market is 10 percent. what is the current stock price of Salerno Industries?

Please explain in a few sentences the approach used.