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Fizzy Drinks, Co. expects its sales and earnings to decline in the coming years. The dividends will decline at a rate of 3.50% annually forever.

Fizzy Drinks, Co. expects its sales and earnings to decline in the coming years. The dividends will decline at a rate of 3.50% annually forever. The last dividend paid was $6. The required return for the stock is 18%. The price of the stock in two years is expected to be:

A) $28.63 B) $27.99 C) $27.87 D) $26.93 E) $25.08

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