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QUESTION 21 KB Toys will pay an annual dividend of $1.575 a share on their common stock next year. The company adheres to a constant

QUESTION 21

KB Toys will pay an annual dividend of $1.575 a share on their common stock next year. The company adheres to a constant rate of growth dividend policy of 5 percent. What will one share of this common stock be worth four years from now if the applicable discount rate is 12.5 percent? a. $15.67 b. $21.19 c. $26.80 d. $25.53 e. $24.31

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