Hill Propane Distributors sells propane gas throughout the eastern half of the state of Texas. Because of population growth and a construction boom in recent years, the company has prospered and expects to continue to do well in the near term. The company will pay a $0.75 per share dividend to investors one year from now. Investors believe that Hill Propane will increase that dividend at 15 % per year for the subsequent 5 years before settling down to a long-run dividend growth rate of 3 %. Investors expect an 8 % return on Hill Propane common shares. What is the current selling price of the stock?
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