General Importers announced that it will pay a dividend of $3.30 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 5 years. Then, 7 years from today, the company will begin paying an annual dividend of $1.40 forever. The required return is 10.7 percent. What is the price of the stock today?

Multiple Choice

• $13.08

• $10.85

• $10.09

• $2.98

• $9.40