5.

Far Side Corporation is expected to pay the following dividends over the next four years: $13, $9, $4, and $2. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever.

Required:

If the required return on the stock is 16 percent, what is the current share price? (Do not round your intermediate calculations.)

$33.27

$41.66

$32.67

$34.27

$31.61