Backyard Company is expected to pay a dividend of $L4 per share in the coming year. The required rate of return on the share is equal to 12% and dividends are expected to grow at the rate of 4% per...

Extracted text: Backyard Company is expected to pay a dividend of $L4 per share in the coming year. The required rate of return on the share is equal to 12% and dividends are expected to grow at the rate of 4% per year. Calculate the current value (price) of the stock. Note: Include two decimal points in your answer. Answer: Give your reasons