Problem:
Jasper Enterprises is expected to pay a $2.25 per share dividend at the end of the year (i.e., D1 = $2.25). The dividend is expected to grow at a constant rate of 5% per year. The required rate of return on the stock, rs, is 14%.
Requirement:
Question: What is the value per share of the company's stock?
Note: Show all workings.