The CRISP Corporation plans to be in business for $25$ years. They announce that they

will pay a dividend of $$2\mathrm{.}00$ per share at the end of $1$ year, and continue increasing the

annual dividend by $8\%$ per year until they liquidate the company at the end of $25$ years.

If you want to earn a rate of return of $10\%$ by investing in their stock, how much should you pay

for the stock?

If the company was to announce that it would continue increasing the dividend at $8\%$ per year

forever, how much more would you be willing to pay for its stock, assuming your required rate

of return is still $10\%?$