Exercise: James Console Company presently pays a dividend of $1.60 per share on its common stock.

The company expects to increase the dividend at a 20% annual rate in the first 4 years, at a 13% in the
next 4 years & then grow the dividend at a 7% rate thereafter. This phased growth pattern is in keeping
with the expected life cycle or earnings. If you require a 16% return to invest in this stock, what would
be value should you place on a share of this stock.