Question $2$

A stock is expected to pay a dividend of $$2\mathrm{.}4$ at the end of this year $($this

Div$1),$ and it should continue to grow at a constant rate of $6\mathrm{.}9\%$ per year

forever. If its required return is $12\mathrm{.}8\%,$ 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

response to $2$ decimal places $($example: if your answer is $12\mathrm{.}3456,12\mathrm{.}3456\%,$

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