(20-points; DDM problem, constant growth firm)

1. A publicly traded firm just paid out a dividend (assume t=0 on the timeline) of $4/share, so this $$$ has been paid out and is no longer in the firm. This firm is expected to make dividend payments forever.

Calculate/estimate the current price or value per share of this stock if its equity cost of capital or required return is 10% per year, and the dividends will increase or grow at a constant annual rate of g=4%/year forever?