Mrs. Dawn Chorus, founder and president of United Bird Seed, is wondering whether the company should make its first public sale of common stock and, if so, at what price.

The company’s financial plan suggests rapid growth over the next three years but only moderate growth afterwards. Forecasted dividends per share are as follows:

Year                1                      2                      3                      4                      5

                       $1.00            $1.20             $1.44           5% growth thereafter

Investors demand a return of 10%.

Calculate the price of United Bird Seed’s stock (today).