Assume Highline Company has just paid an annual dividend of
$1.08
. Analysts are predicting an
10.3%
per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of
5.7%
per year. If Highline's equity cost of capital is
7.5%
per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?
The value of Highline's stock is $
◻
(Round to the nearest cent.)