S$08-20$ Negative Growth $[$LO$1]$

Antiques $R$ Us is a mature manufacturing firm. The company just paid a dividend of

$$12\mathrm{.}40,$ but management expects to reduce the payout by $4$ percent per year indefinitely.

If you require a return of $9\mathrm{.}5$ percent on this stock, what will you pay for a share today?

$($Do not round intermediate calculations and round your answer to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$