QUESTION $9$

ABC Company expects to pay a dividend of $$2$ per share at the end of year $1$ and $$3$ per share at the end of year $2,$ and then be sold for $$32$ per share at the end of year $2.$ If the required rate of return on the stock is $15$ percent, what is the current value of the stock?

$$28\mathrm{.}20$

$$32\mathrm{.}17$

$$32\mathrm{.}00$

$$29\mathrm{.}18$

$$37\mathrm{.}00$