Washington Inc. paid a dividend per share of $1.50 on its common stock over the past twelve months. The firm just announced a new product line and analysts are excited that the EPS growth rate for the firm may potentially increase from the previously expected 8% to 9%. Investors expect (require) a 12% annual return on their investment in Washington common stock.

What is the current market value of a share of common stock if the newly revised growth estimate is used (the 9%)?

Part 2. What is the value per share of common stock if the revised growth estimate is not used (use the original 8%).