Question: Five Star Corporation will pay a dividend of $ 3 . 9 0 per share next year. The company pledges to increase its dividend by

Five Star Corporation will pay a dividend of $3.90 per share next year. The company pledges to increase its dividend by 5 percent per year, indefinitely. If you require a return of 8 percent on your investment, how much will you pay for the companys stock today?

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