PLEASE PROVIDE STEP BY STEP SOLUTIONS

Michael's, Inc. just paid $1.95 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.30 percent. If you require a rate of return of 8.5 percent, how much are you willing to pay today to purchase one share of Michael's stock?

$50.38

$24.21

$48.43

$15.89

$23.93