A company is expecting a period of intense growth and has decided to retain more of their earnings to help finance that growth.As a result, the company is going to reduce the annual dividend by 12.50% a year for the next three years.After those three years, the company will maintain a constant dividend of $0.60 a share.Recently, the company paid $1.40 as the annual dividend per share. What is the market value of this stock if the required rate of return is 9.50%?

Question 30 options:

$7.54

$7.73

$7.91

$8.10

$8.29