Valorous Corporation will pay a dividend of

$ 1.70

per share at this year's end and a dividend of

$ 2.50

per share at the end of next year. It is expected that the price of Valorous' stock will be

$ 42

per share after two years. If Valorous has an equity cost of capital of

10%,

what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?