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PRE Ltd has increased its dividend each year of its life by 4% p.a. and is expected to continue doing so into the foreseeable future.

PRE Ltd has increased its dividend each year of its life by 4% p.a. and is expected to continue doing so into the foreseeable future. Yesterday, the company paid a dividend of $2.00 and the required return on its shares has been 8%. The dollar amount by which its current share price will change if the required return on its shares rises to 10% is closest to:

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$16.67.

+$16.67.

$17.33.

+$17.33.

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