Valuation
Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 6% and the market risk premium is 4%.
Van Buren currently expects to pay a year-end dividend of $2.85 a share (D1 = $2.85). Van Buren's dividend is expected to grow at a constant rate of 6% a year, and its beta is 0.8. What is the current price of Van Buren's stock? Round your answer to the nearest cent.
$ ____________