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M&D Enterprises paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for
M&D Enterprises paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for the next three years. After that time, it plans to pay a constant $2.25 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11.5 percent?
a.$19.41
b.$18.40
c.$17.46
d.$16.93
e.$17.13
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