From the following information calculate the price of the stock. The stock will pay its first...

From the following information calculate the price of the stock. The stock will pay its first annual dividend of $1.00 four years from now. The dividends for years 5 and 6 will be $1.20 and $1.30, respectively. After year 6, dividends will grow by 2.00% p.a. forever. The required rate of return is 12.00% p.a.

a. $3.50 b. $11.52 c. $9.74 d. $16.49 e. $8.69

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jeff jeffy answered 1 month ago

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