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A stock is expected to pay its first $ 0.1 dividend in 4 years from now (t=4). The dividend is expected to be paid annually
A stock is expected to pay its first $0.1 dividend in 4 years from now (t=4). The dividend is expected to be paid annually forever and grow by 2% pa. The discount rate is 7% pa. Estimate what the stock price will be in 5.75 years from now. The stock price at time 5.75 is expected to be:
Select one:
a.
$2.0459
b.
$2.0705
c.
$2.1462
d.
$2.1891
e.
$2.2514
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