1. Acme Technologies is expected to pay a dividend of $1.00 one year from now. Compute the value of the stock under the assumptions that the annual dividend will grow 3.00% per year in perpetuity and that investors require a 6.80% per year expected return.
Round your answer to the nearest penny. For example, $2,371.243 should be entered as 2371.24
2. Identify the correct formula used to solve the previous problem.