Stock Valuation. On December 31, 20X2, the shares of Amacom, Inc., closed at $20. The company subsequently paid a year-end dividend in each of the years 20X3 through 20X7 as follows: 20X3: $1.00...

Stock Valuation. On December 31, 20X2, the shares of Amacom, Inc., closed at $20. The company subsequently paid a year-end dividend in each of the years 20X3 through 20X7 as follows:

20X3: $1.00         20X6: $1.25

20X4: $1.00         20X7: $1.25

20X5: $1.10

Suppose you had purchased a share of Amacom stock on December 31, 20X2. Find the price at which you must sell your share at 20X7 year-end in order to realize an annual compounded total rate of return of 10 percent on your initial investment (before commissions and taxes). (CFA, adapted.)