Pineview Lumber Company paid a

dividend of $$2\mathrm{.}40$ per share in the year

that just ended. The firm's equity cost of

capital is $13\%,$& the company's

management believes that they can

increase the dividend at a rate of $5\%$ in

perpetuity. If these estimates are correct,

what should be the value of Pineview's

common stock?