You are a financial manager for Shah Corporation. The firm is facing financing issues because of the COVID-19 and has decided to retain more of their earnings to help finance the growth. As a result, the board of directors is going to reduce the annual dividend by 0.75% a year for the next five years. After that they will maintain a constant dividend of $0.50 a share. Last year, the company paid $1.95 as the annual dividend per share.

What is the market value of this stock if the required rate of return is 6.09%? Please show all the calculations by which you came up with the final answer. (5 Points)