Answer:
Current price of Brown Company = $17.68
Step-by-step explanation:
Using dividend growth model we have

Where,
= Current price of share
= Dividend to be paid at year end = $1.68 as provided,
= Cost of equity or expected return on equity = 12% as provided,
g = growth rate = 2.5% as provided,
Now putting the values in above we have



Current price of Brown Company = $17.68
This is the price every person would be willing to pay at current level.