Citrus Support is a young start$-$up company that is currently retaining all of its earnings. The company plans to pay a $$2$ per share dividend in Year $7$ and increase that dividend by $2\mathrm{.}2$ percent per year thereafter. What is the current share price if the required return is $16$ percent?

Question $8$ Answer

a$.$

$$5\mathrm{.}95$

b$.$

$$6\mathrm{.}62$

c$.$

$$14\mathrm{.}29$

d$.$

$$8\mathrm{.}59$

e$.$

$$11\mathrm{.}78$