Hastings Corporation is interested in acquiring Visscher Corporation. Assume that the riskfree rate of interest is 4%, and the market risk premium is 5%. Visscher currently expects to pay a year-end...

Hastings Corporation is interested in acquiring Visscher Corporation. Assume that the riskfree
rate of interest is 4%, and the market risk premium is 5%.

Visscher currently expects to pay a year-end dividend of $1.99 a share (D1 =
$1.99). Visscher’s dividend is expected to grow at a constant rate of 5% a year, and its beta
is 0.8. What is the current price of Visscher’s stock?