Suppose that the last dividend paid by a company was $ 2.20, dividends are expected to grow

Question:

Suppose that the last dividend paid by a company was $ 2.20, dividends are expected to grow at a constant rate equal to 5 percent forever, and stockholders require 16 percent to invest in similar types of investments, what is the value of company’s stock?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...