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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

  1. 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 $30 and cease operations. How much would you pay for the stock if you require a 10% rate of return?
  2. A.$25.40
  3. B.$16.93
  4. C.$28.22
  5. D.$14.11
  6. E.$19.76
  7. F.$22.58

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