12-11. China S. Construction, Inc., is in the business of building electrical power plants in the eastern United States. Jack Godell and the rest of the board members of the firm have just announced a $4 per share dividend on the corporations common stock to be paid in one year. Because the quality of some of its recent projects is under attack by investigative television reporters, the expected constant dividend growth rate is only estimated to be 1 percent. The required rate of return for similar stocks in this industry is 16 percent.

a. What is the present value of the expected dividends from one share of China S. Constructions common stock?