Item$8$

$5\mathrm{.}26$points

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Item $8$

Lauren Corporation will pay a dividend of $$3\mathrm{.}70$ next year. The company has stated that it will maintain a constant growth rate of $5\mathrm{.}25$ percent a year forever.

If you want a return of $18$ percent, how much will you pay for the stock?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

If you want a return of $11$ percent, how much will you pay for the stock?