Sheridan, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years. After that, a constant-growth rate of 8 percent is expected. The firm expects to pay its first dividend of $2.75 a year from now. If dividends will grow at the same rate as the firm and the required rate of return on stocks with similar risk is 15 percent, what is the current value of the stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)

    The fund compute is the offer compute of integral expected future dividends. The leading five dividends can be adapted using the growth rebukes 30% and 17%. Year six on wards, the offer compute of dividends can be adapted using the offer compute formula of a growing fixity. The mix of these 2 offer computes is the running fund compute. Calculations are as shown below:

    Growth rebukes Year 2 and 3 Year 4 and 5 Year 6 beyond 17% 4 Discount rebuke 15% Year Dividends 2.75 3.58 4.65 5.44 6.36 6.87 10

    Therefore, the running fund compute is $63.22

    Formulas used in yield are as shown:

    Growth rebukes Year 2 and 3 Year 4 and 5 Year 6 beyond 17% 4 Discount rebuke 15% Year 0 1 Dividends 10 Offer compute of leading 5