Nike Inc. just paid a dividend of $$3\mathrm{.}10$ per share which is expected to increase by $4\mathrm{.}50\%$ per year in perpetuity. If investors require a $9\mathrm{.}50\%$ annual rate of return what is the price of the stock today?

Question $6$ Answer

a$.$

$$64\mathrm{.}79$

b$.$

$$34\mathrm{.}10$

c$.$

$$55\mathrm{.}38$

d$.$

$$62\mathrm{.}00$

e$.$

$$79\mathrm{.}69$