9.9 A firms common stock is trading at $80 per share. In the past, the firm has paid a consistent dividend of $6 per share. However, the company has just announced new investments that the market did not know about. The market expects that with these new investments, the dividends should grow at 4% per year forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement?

Must show work/calculations

Select one: a. $94.50 b. $156.00 c. $171.43 d. $178.29