Claxton, Inc. paid a dividend of $ per common share every December from through The dividend is expected to continue at that level in and In and beyond, the dividend is expected to increase by an average of per year.

Claxton\'s estimated cost of capital is:

Cost of debt capital:

Cost of equity capital:

Weighted average cost of capital:

Required

Using the dividend discount model, estimate the value of a share of Claxton\'s common stock at the beginning of