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The stock of Sedly Inc. is expected to pay the following dividends: Year 1 2 3 4 Dividend 2.25 3.5 1.75 2 At the end

The stock of Sedly Inc. is expected to pay the following dividends:

Year

1

2

3

4

Dividend

2.25

3.5

1.75

2

At the end of the fourth year its value is expected to be $37.50. What should Sedly sell for today if the return on stocks of similar risk is 10%?

a. $31.15

b. $32.20

c. $33.23

d. $37.50

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