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Games R Us Inc. is expected to pay no dividends for the next six years. At the end of the sixth year it will pay
Games R Us Inc. is expected to pay no dividends for the next six years. At the end of the sixth year it will pay a dividend of $45 and cease operations. How much would you pay for the stock if you require a 10% rate of return?
A. | $16.93 | |
B. | $25.40 | |
C. | $22.58 | |
D. | $28.22 | |
E. | $19.76 | |
F. | $14.11 |
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