Question $7$

A firm is expected to pay a dividend of $$3\mathrm{.}90$ one year from now and $$4\mathrm{.}25$ two years from now

and $$4\mathrm{.}30$ three years from now. The firm's stock price is expected to be $$110\mathrm{.}50$ in four years.

What is the firm's stock value using a $13\mathrm{.}78\%$ required return?

$$65\mathrm{.}93$

$$75\mathrm{.}56$

$$73\mathrm{.}36$

$$201\mathrm{.}47$