You read in the paper that Summit Systems will pay a dividend of $$1\mathrm{.}75$ this year. At that point you expected Summit's dividend to grow by $6\mathrm{.}0\%$ per year. Today you read in the paper that Summit Systems has revised its growth

prospects and expects its dividends to grow at a rate of $4\mathrm{.}0\%$ per year forever. The firm's equity cost of capital is $10\mathrm{.}5\%.$

a$.$ What is the value of a share of Summit Systems stock based on the original expected dividend growth of $6\mathrm{.}0\%$ per year?

b$.$ If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get? Why?