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6. You bought 1 share of stock for $80 one year ago, you just received an annual dividend payment of $2 per share, and you

6. You bought 1 share of stock for $80 one year ago, you just received an annual dividend payment of $2 per share, and you can sell the stock for $70 per share today. Your return on this investment was 2.5% -11.4% -10.0% -2.5%

6B. What is the current share price for a stock that is expected to pay a $2 dividend every year forever if the expected return is 20.0% per year and the next dividend is expected in 1 year? 10.0 12.5 20.0 1.5

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