Question 19
A company follows a dividend policy that raises dividends annually at a rate of 3% (and expects this rate to go forever). The company just paid an annual dividend of $3.08. The required rate of return is 16%.
What is today's stock price?
For your answer round to the nearest 2 decimals. Do not use the $ sign in your answer. For example, if the answer is $3.237 enter your answer as 3.24; Do not enter it as $3.237, $3.2, 3.2, or 3.237