Question $1$

Stock ABC is expected to pay dividends of $2\mathrm{.}00$ per share for the next two years $($dividend in year $1$ will be $2\mathrm{.}00$ and dividends year two will also be $200).$ In the end of this two$-$year period and thereafter the constant growth rate of stock dividends is expected as $3\%.$ The required rate of return is $13\%.$ What should be the stock price of ABC today?

$24\mathrm{.}33$

$19\mathrm{.}47$

$20\mathrm{.}60$

$22\mathrm{.}60$