Question $21$

$1$ pts

A firm expects to pay an annual dividend of $$2\mathrm{.}25$ per share on its stock one year from today. Based on the historical dividend payment pattern, an analyst assumed the dividend will grow at a constant rate of $1\mathrm{.}99$ percent per year indefinitely. The appropriate discount rate for this stock is $16\mathrm{.}27$ percent. What is the value of one share of this stock today?

$$15\mathrm{.}76$

$$14\mathrm{.}10$

$$13\mathrm{.}83$

$$16\mathrm{.}07$

$$113\mathrm{.}07$