Pan-Elixir Ltd. is a pharmaceutical company. Its stock is fairly priced. Last year (t = 0), it paid a dividend of $2.50 per share to its shareholders. The company management has estimated that it will be able to maintain a constant growth rate in dividends of 3% per annum. Compute the expected intrinsic price of the stock in year 5. Assume that a) All stocks are fairly priced such that the intrinsic and market values are equal. b) Dividends are paid at the beginning of the year.