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Michael's, Inc., just paid $2.70 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.8 percent.

Michael's, Inc., just paid $2.70 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.8 percent. If you require a rate of return of 10 percent, how much are you willing to pay today to purchase one share of the company's stock?

$34.01

$68.01

$70.71

$28.57

$18.08

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