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Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for

Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $10/year forever. If you require 22 percent rate of return on investments in this risk class, how much is this stock worth to you?

A.

$41.46

B.

$34.54

C.

$37.77

D.

$55.99

E.

$50.50

F.

$45.68

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