A new startup company, Nicdin Incorporated, is trying to encourage new investors in their company. They have announced that they will be using all the earnings for growth in the first five years. In year six they plan to start paying annual dividends of 3.5% on their preferred shares (par value $100 ). They also plan to pay a bonus dividend of $8 in year six to thank the faithful investors. How much is the preferred stock worth today? Assume a required rate of return of 6%