ANSWER :
Given :
D0 = 0.95 ($)
g = 2.6 % = 0.026
r = 13% = 0.13
Now, as per DDM at constant growth :
Current value off the stock
= D0 (1 + g) / (r - g)
= 0.95*(1 + 0.026)/ (0.13 - 0.026)
= 9.37 ($)
Maximum that can be paid per share = 9.37 ($) (ANSWER)
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