Problem $7-18$ Constant$-$Growth Model $($LO$2)$

You believe that the Non$-$Stick Gum Factory will pay a dividend of $$3$ on its common stock next year. Thereafter, you expect dividends

to grow at a rate of $2\%$ a year in perpetuity. If you require a return of $10\%$ on your investment, how much should you be prepared to

pay for the stock?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Stock price