Asonia Co. will pay a dividend of \( \$ 5.70, \$ 9.80, \$ 12.65 \), and \( \$ 14.40 \) per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of10.8 percent on the company's stock, what is the stock price?

We are given the following dividends: \[ D_1 = \$5.70,\quad D_2 = \$9.80,\quad D_3 = \$12.65,\quad D_4 = \$14.40 \] and a required return of \( r = 10.8\% = 0.108 \). Since the company pays these dividends over the next 4 years and then closes, the stock price is the sum of the present values of these dividends. The present value of each dividend is given by: \[ PV_t = \frac{D_t}{(1+r)^t} \] Thus, the stock price \( P \) is: \[ P = \frac{5.70}{(1.108)^1} + \frac{9.80}{(1.108)^2} + \frac{12.65}{(1.108)^3} + \frac{14.40}{(1.108)^4} \] Now, we compute each term step by step: 1. For \( t = 1 \): \[ PV_1 = \frac{5.70}{1.108} \approx 5.145 \] 2. For \( t = 2 \): \[ (1.108)^2 \approx 1.227664,\quad PV_2 = \frac{9.80}{1.227664} \approx 7.978 \] 3. For \( t = 3 \): \[ (1.108)^3 \approx 1.359279,\quad PV_3 = \frac{12.65}{1.359279} \approx 9.305 \] 4. For \( t = 4 \): \[ (1.108)^4 \approx 1.505,\quad PV_4 = \frac{14.40}{1.505} \approx 9.569 \] Finally, summing these present values gives: \[ P \approx 5.145 + 7.978 + 9.305 + 9.569 \approx 32.997 \] Therefore, the stock price is approximately: \[ \boxed{\$33.00} \]