Question $1$

$5$ pts

A firm is expected to produce a constant annual rate of dividend growth of $5$ percent. The most recent dividend to be paid was $$2\mathrm{.}50.$ An investor has a $12$ percent required return on this investment. The value of a share of the firm's common stock is

$$40\mathrm{.}89$

$$47\mathrm{.}70$

$$46\mathrm{.}37$

$$37\mathrm{.}50$