Problem:
The Zuwalt company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%.
Required:
Question: What is the current market price of the stock?
Note: Please show how to work it out.