A firm expects to pay dividends at the end of each of the next four years...

A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. Afterwards, dividends are expected to level off at 7%. If you require a 16% percent rate of return, how much should you be willing to pay for this stock today?

Question options:

1)	$41.61 (THIS OPTION IOS WRONG)

$29.35

$35.01

$28.51

OPTION 1 IS WRONG

Solutions

Expert Solution

Answer:- $29.35

Explanation:-

jeff jeffy answered 1 year ago

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