You just got hired by the Federal Trade Commission, and you're the envy of all your friends. You feel good when you overhear your roommate describe your new job to another student. However, in his enthusiasm, he made a couple of mistakes.

Beachballs, inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. after the 3-year period, their growth will level off to its normal rate of 6%. dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. the last dividend paid was $1.00. if an investor requires a 10% return on beachballs, the price she is willing to pay for the stock is closest to: