Question 25

Gamma Corp. is expected to pay the following dividends over the next three years: $1.50, $2.50, and $3.50. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on the stock is 10 percent, what is the current share price

Group of answer choices

$77.00

$73.50

$68.65

$61.28

$58.65