Earthshapers inc., a manufacturer of heavy construction equipments based in u. s.a., maintains large sales and support operations overseas. before sending new employees to its operations in japan, it requires the employees to take courses in japanese history and culture so that they can adjust more easily to living in japan. this training focuses on the component of international competence training.

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: