1. Murray Telecom just paid a $3.50 per share stock dividend (D₀). Dividends are expected to grow at a rate of 8 percent per year for the next 6 years, 4 percent per year for the subsequent 4 years, and then level off into perpetuity at a growth rate of 2 percent per year. Using the dividend growth model, what should be the value of the firms common stock if the required rate of return on similar securities is 11.25 percent?