number 17

17) GM paid a dividend of $1.25 a share last week. The company is planning on paying $2.75, $3.75. and $4.85 a share over the next 3 years, respectively. After that, the dividend will be constant at $5 per share per year. What is the approximate market price of this stock if the required rate of return is 12 percent? O A) $53.01 O B) $43.8 O c) $40.98 OD) $38.55 E) None of the above