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One year ago, you purchased a share of Smith Ore. At the time, the market believed the company's promise to pay investors a $2 dividend

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One year ago, you purchased a share of Smith Ore. At the time, the market believed the company's promise to pay investors a $2 dividend annually. Today, you want to sell this share right after you receive your dividend. But today the company unexpectedly announced a new dividend policy. Starting next year, the market believes that Smith Ore will pay a $3 dividend annually, and will grow that dividend by 0.5% each year thereafter. Given a discount rate of 5%, how much did the price of a share of Smith Ore change? $20.00 $21.00 $18.33 $26.67 $22.33

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