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A company has a unique dividend policy. It just paid a $3 dividend. Next year, the firm anticipates paying a$3.50 dividend. In year 2, the
A company has a unique dividend policy. It just paid a $3 dividend. Next year, the firm anticipates paying a$3.50 dividend. In year 2, the company will pay a $4 dividend. After year 2, the company anticipates growing it's dividend at a rate of 2% per year, forever. If the required return by shareholders is 16%, what is the price of the stock according to the dividend models discuss in class? O $27.65 O $24.52 O $31.55 O $38.04 O $41.91 O $20.18 O $22.45
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