Question $2$

A stock is expected to pay a dividend of $$2\mathrm{.}2$ at the end of this year

$($this is Div$1),$ and it should continue to grow at a constant rate of $5\mathrm{.}8\%$

per year forever. If its required return is $13\%,$ the stock's price today

should be $

Margin of error for correct responses: $+/-.05$

Rounding and Formatting instructions:

Do not enter dollar signs, percent signs, commas, X$,$ or any words in

your response. Do not round any intermediate work, but round your

final$*$ response to $2$ decimal places $($example: if your answer is

$12\mathrm{.}3456,12\mathrm{.}3456\%,$ or $$12\mathrm{.}3456,$ you should enter $12\mathrm{.}35).$