. Pan-Elixir Ltd. is a pharmaceutical company. Its stock is fairly priced. Last year (t = 0), it paid a dividend of $2.50 per share to its shareholders. The company management has RELEASED BY THE CC, MGMT2023, SEMESTER 1, 2022 2 estimated that it will be able to maintain a constant growth rate in dividends of 3% per annum.

Assume that a) All stocks are fairly priced such that the intrinsic and market values are equal.

b) Dividends are paid at the beginning of the year