Shoe$-$in Corp. for the past several years has not paid dividends on its stock and it

does not plan to pay dividends in the forthcoming years. However, the company is

very certain of its future profitability and will start paying an annual dividend of $$20$

in $6$ years $($at the end of year $6)$ and it will increase the dividends by $2\%$ per year

forever. If the required rate of return on this stock is $12\%,$ what is the price of this

stock today?

Do not use the $ sign. Do not use commas to separate thousands. Use to decimals. Round to the

nearest cent. For example if you obtain $$1,432\mathrm{.}728$ then enter $1432\mathrm{.}72$ ; if you obtain $$432$ then

enter $432\mathrm{.}00$

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