Question $26$

Bernie's Suntan Lotions has been selling herbal, sustainable UV protection for years. The company has

been expanding, and that expansion has made cash flow available for dividends spotty. That situation is

expected to continue for the next five years. The dividends paid by the company $($per share$)$ are expected

to be as follows:

If we assume that after these five years, the dividends begin to grow at a constant rate of $0\mathrm{.}05\%$ per year

$($based on the $$1\mathrm{.}67$ expected in year $5),$ and if the market is requiring an annual return of $9\mathrm{.}14\%$ per year,

what is the most you should be willing to pay for a share of Bernie's Suntan Lotion stock? Please enter

your answer to the nearest penny.