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26. Firm AAA was set up ten years ago. The dividend payout is as follows and then to grow at a constant rate of 8%

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26. Firm AAA was set up ten years ago. The dividend payout is as follows and then to grow at a constant rate of 8% forever. Imagine required retum -11%, find stock price Year year! year2 year3 year4 years year NA NA NA 50% 25% 8% Dividend $0 $0.25 0.375 0.469 $0.506 a $10.94 b. $11.19 c. $10.45 d. $10.72 $0

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