Suppose an investor is considering the purchase of a share of the Utah Mining Company. The stock will pay a $3 dividend a year from today. This dividend is expected to grow at 10 percent per year (g...

Suppose an investor is considering the purchase of a share of the Utah
Mining Company. The stock will pay a $3 dividend a year from today. This
dividend is expected to grow at 10 percent per year (g 10%) for the
foreseeable future. The investor thinks that the required return (r) on this
stock is 15 percent, given her assessment of Utah Mining’s risk. (We also
refer to r as the discount rate of the stock.) What is the value of a share of
Utah Mining Company’s stock?