Suppose you are an enterprising and creative entrepreneur who is considering a takeover of Itronic Listening Co. (ILC). You believe that under your management Itronic could sustain a dividend growth rate of 6% into the foreseeable future (they just paid a dividend of $2). But the takeover and subsequent changes to ILC's business will add more risk, so you will require a 14% return on your investment. What is the maximum price you should be willing to pay for the ILC stock?   $23.50 $25.00 $26.50 $28.50 $29.50

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A: The formula used is shown:

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A:

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A: Excel Spreadsheet: Excel Workings: