Wisconsin Dairy just paid a dividend of $1.50. The company's dividend is expected to grow by 20% this year, and grow by 6% in Year 2 and thereafter. The required return is 9.00%. What is the estimated stock price.

(hint:

Step 1 calculate d1, d2 (d0=1.5).

Step 2 calculate time 1 value of all future dividend (d2, d3, d4...) using dividend growth model

Step 3 discount d1 and time 1 value of all future dividend back to time 0 and add them up.