24.

Mack Industries just paid a dividend of $1 per share (DO = $1). Analysts expect the company's dividend to grow 10 percent this year (D1 = $1.1) and 9 percent next year. After two years the dividend is expected to grow at a constant rate of 2 percent. The required rate of return on the company's stock is 16 percent. What should be the company's current stock price? O $8.33 O $7.33 O $6.33 O $9.33 O $5.33

Mack Industries just paid a dividend of $1 per share (D0=$1). Analysts expect the company's dividend to grow 10 percent this year (D1=$1.1) and 9 percent next year. After two years the dividend is expected to grow at a constant rate of 2 percent. The required rate of return on the company's stock is 16 percent. What should be the company's current stock price? $8.33 $7.33 $6.33 $9.33 $5.33