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A new company has an unusual dividend policy. Next year they anticipate paying out a $1.50 dividend. In year 2, they will increase the dividend
A new company has an unusual dividend policy. Next year they anticipate paying out a $1.50 dividend. In year 2, they will increase the dividend to $2.00. After year 2, the dividend will grow at a constant rate of 5%. What is the current stock price? Assume that r = 15%. O $25.08 O $30.52 O $22.10 $23.04 $18.70 O $16.62 $19.85 O $27.51
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