QUESTION $20$

Microsoft Inc. expects to pay a dividend of $$3$ per share at the end of year $1$ and these dividends are expected to grow at a constant rate of $6$ percent per year forever. If the required rate of return on the stock is $18$ percent, what is the current value of the stock today?

$$25$

$$54$

$$50$

$$16\mathrm{.}66$

$$3\mathrm{.}18$