PLEASE EXPLAIN WHY THIS IS 6

Latcher's Inc. is a relatively new rm that is still in a period of rapid development. The

company plans on retaining all of its earnings for the next six years. Seven years from now, the

company projects paying an annual dividend of $.25 a share and then increasing that amount

by 3% annually thereafter. To value this stock as of today, you would most likely determine

the value of the stock _______ years from today before determining today's value.

THE ANSWER IS (C) 6, CAN YOU EXPLAIN STEP BY STEP HOW TO GET THERE WITH WORDS AND CALCULATIONS

(a) 4.

(b) 5

(c) 6

(d) 7

(e) 8