You are considering purchasing the stock of Arnold Incorpora…

You are considering purchasing the stock of Arnold Incorporated stock which is expected to pay a dividend of $10. The stock is currently selling for $50 and is expected to have dividend growth of 8% based on its past revenue growth. Currently, the S&P is returning an average of 12% which results in a required return for this stock of 12%. How much should you pay for this stock? (4)