Question $3$

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

$6\%$ per year. The most recent dividend $($Div$0)$ was $$4\mathrm{.}3$ 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

response to $2$ decimal places $($example: if your answer is $12\mathrm{.}3456,12\mathrm{.}3456\%,$

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