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16. The Red Bud Co. just paid a dividend of $1.20 a share. The company announced today that it will continue to pay this constant

16. The Red Bud Co. just paid a dividend of $1.20 a share. The company announced today that it will continue to pay this constant dividend for the next three years after which time it will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8%? A. $3.09 B. $3.15 C. $3.23 D. $3.44 E. $3.60

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