Q24

1. Limerick currently pays a dividend of $1.50 per share. Which comes closest to Limerick's price per share if we assume that their dividend grows by 8% for two consecutive years, and then grows by 3% each year (starting in year 3) thereafter forever? Use a required rate of return of 10%

a.$ 54.49

b.$ 33.28

c.$ 27.98

d.$ 24.19

e.$ 41.23