1. Stars Ltd, being a local company and engaging is agricultural products, is maintaining a constant growth rate. Its last dividend that was paid yesterday, was $2.00. The required rate of return is 13%. What would the stock price be if its dividends were expected to have zero growth?

1. $12.68
2. $15.38
3. $16.12
4. $12.25

1. Stars Ltd, being a local company and engaging is agricultural products. Its last dividend that was paid yesterday, was $2.00. Suppose Stars ltd.s stock dividends are expected to experience zero growth during the first 3 years and then to resume its steady-state growth of 6 percent in the fourth year and onwards. What is the stocks value now?
   1. $24.28
   2. $22.13
   3. $25.72

$22.14