In 2006 and2007, Kenneth Cole Productions(KCP) paid annual dividends of $ 0.72

. In2008, KCP paid an annual dividend of $ 0.36

, and then paid no further dividends through 2012. Suppose KCP was acquired at the end of 2012 for $ 15.25

per share. What would an investor with perfect foresight of the above been willing to pay for KCP at the start of2006? (Note: Because an investor with perfect foresight bears norisk, use arisk-free equity cost of capital of 5 %

)