A stock is expected to pay its first $21 dividend in 7 years from now. The dividend is expected to be paid annually forever and grow by -2% pa (note the negative sign). The discount rate is 2% pa. Estimate the current stock price. The current stock price should be:

Select one:

a.

$896.1649

b.

$487.185

c.

$466.185

d.

$457.0441

e.

$448.0825

Clear my choice