Ace Inc. is expected to pay a dividend of $5.00 per share ne…

Ace Inc. is expected to pay a dividend of $5.00 per share next year (that is, D1 = $5.00), which is expected to grow at a 6% rate annually forever thereafter.  Given the risk level of the stock, investors require a 10% return on this stock, what should be the market price of Ace Inc.’s common stock?