Problem:
Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.30, $16.30, $21.30, and $3.10. Afterwards, the company pledges to maintain a constant 5.75 percent growth rate in dividends, forever.
Required:
Question: If the required return on the stock is 8 percent, what is the current share price?
Note: Provide support for your underlying principle.