What does this mean

Find the price of stock that pays a $$2\mathrm{.}00$ per share in annual dividends forever and whose discount rate is $7\%.$

$$14\mathrm{.}00$

Reason: $P_0=\frac{D_1}{r}=$$$\frac{2\mathrm{.}00}{0\mathrm{.}07}=$$$28\mathrm{.}57$

$$1\mathrm{.}40$

Reason: $P_0=\frac{D_1}{r}=$$$\frac{2\mathrm{.}00}{0\mathrm{.}07}=$$$28\mathrm{.}57$

$$32\mathrm{.}45$

Reason: $P_0=\frac{D_1}{r}=$$$\frac{2\mathrm{.}00}{0\mathrm{.}07}=$$$28\mathrm{.}57$

$$28\mathrm{.}57$

Correct Answer

$$28\mathrm{.}57$