Bakersfield Inc. recently paid a dividend per share of $2.10. The Board of Directors would like to grow the dividend at 5% per year indefinitely. If shareholder expect a return of 8%, what is the current price of the stock?

Question

Bakersfield Inc. recently paid a dividend per share of $2.10.   The Board of Directors would like to grow the dividend at 5% per year indefinitely.   If shareholder expect a return of 8%, what is the current price of the stock?

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The Answer of Bakersfield Inc. recently paid a dividend per share of $2.10.   The Board of Directors would like to grow the dividend at 5% per year indefinitely.   If shareholder expect a return of 8%, what is the current price of the stock?