Question: MD Tech is currently not paying any dividends. Analysts expect that MD Tech will pay dividends for the first time in five years from today.

MD Tech is currently not paying any dividends. Analysts expect that MD Tech will pay dividends for the first time in five years from today. They believe that the first dividend (D5) will be $2.0 and that the dividends will grow at 3% for the foreseeable future (i.e., forever). What is the price of one MD Tech share today assuming Md Tech's cost of equity is 11%?

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