Quantitative Problem 1: Hubbard Industries just paid a common dividend, D 0 , of $1.10. It expects to grow at a constant rate of 3% per year. If investors require a 12% return on equity, what is the...

Quantitative Problem 1: Hubbard Industries just paid a common dividend, D₀, of $1.10. It expects to grow at a constant rate of 3% per year. If investors require a 12% return on equity, what is the current price of Hubbard's common stock? Do not round intermediate calculations. Round your answer to the nearest cent.
? $   per share

Zero Growth Stocks:

The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is (see attached image):