Answer:
$54.52
Explanation:
The formula for determining share price is as stated below based on the Gordon Constant Dividend Model:
Share price=current dividend*(1+g)/(Ke-g)
current dividend=$3.12
g=constant dividend growth rate=3.1%
Ke=required return on the investment=9%
Share price=$3.12*(1+3.1%)/(9%-3.1%)
Share price=$3.12*1.031/5.9%
Share price=$3.21672 /5.9%
share price=$54.52
