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A stock expects to pay dividends of $4.60 per share one year from today; $5.70 per share two years from today; and $5.95 per share
A stock expects to pay dividends of $4.60 per share one year from today; $5.70 per share two years from today; and $5.95 per share three years from today. After that, dividends are expected to be constant at $6.42 per share per year indefinitely. Investors require a rate of return of 10 percent on this stock. How much should this stock sell for today?
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$44.71
$49.08
$64.27
$57.21
$61.60
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