Suppose the Pale Hose Corp. is expected to pay a dividend next

year of $1.75 per share. Both

sales and profits for Pale Hose

are expected to grow at a rate

of 15% for the following two years

and then at 2% per year thereaft

er indefinitely. Dividend growt

h is expected to match sales

growth. If the required return is 14%, what is the value of a s

hare of Pale Hose?