7

Ford Trucks Inc. announced that it will pay a dividend of $4.15 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 7 years. Then, 9 years from today, the company will begin paying an annual dividend of $2.25 forever. The required return is 12.4 percent. What is the price of the stock today? Multiple Choice $11.70 $10.03 $10.81 $3.69 $18.15