Assume today is december 31, 2013. imagine works inc. just paid a dividend of $1.15 per share at the end of 2013. the dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. the company's cost of equity (rs) is 9.5%. using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations. $ per share

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.