TAB just paid $0.78 dividend. You also expect TAB's per share dividend to grow by 11 percent per year for the next three years. After that you expect dividend growth to diminish by two and half percent each year for the subsequent three years. However, after that you think the dividend will grow at two percent thereafter. You have just calculated TAB company's required return. Now you are trying to determine how much you will pay for TAB company's stock if current risk-free rate is 1.1%, company's beta is 1.05 and market risk premium is 7.00 % How much would you pay for TAB company's stock?

To "show your work" – show your calculations either using formulas or financial calculator.