VolCo stock will pay annual dividends of $2.96 and $2.16 in each of the next two years, with the first dividend occurring one year from today. Then, in year three and continuing every year thereafter, VolCo's annual dividend will be a constant $2.75. If investors require a 13.1% rate of return, what is a fair price for the stock today? Round your answer to the nearest penny.

Answer rating: 100% (QA)

To calculate the fair price of the stock today we can use the present value of the ex... View the full answer