Question $3$

A firm's earnings and dividends are expected to decline at a constant

rate of $4\%$ per year. The most recent dividend $($Div$0)$ was $$4\mathrm{.}7$ and the

required return on the stock is $13\%.$ The current price of the stock

should be $

Margin of error for correct responses: $+/-.05$

Rounding and Formatting instructions:

Do not enter dollar signs, percent signs, commas, $x,$ or any words in

your response. Do not round any intermediate work, but round your

${?}^{**}$ final$*$ response to $2$ decimal places $($example: if your answer is

$12\mathrm{.}3456,12\mathrm{.}3456\%,$ or $$12\mathrm{.}3456,$ you should enter $12\mathrm{.}35).$