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A firm has just paid a dividend of $1.30 per share. The dividend is expected to grow at 9.4% per year for two years and
A firm has just paid a dividend of $1.30 per share. The dividend is expected to grow at 9.4% per year for two years and then grow at a constant rate of 3.3% per year in perpetuity. The cost of equity is 8.5%. What is the value of each share? Select one:
a. $27.55
b. $25.12
c. $26.83
d. $28.89
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