Question: 3. Dividend Discount Model (LO1, CFA3) A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7 percent and the

3. Dividend Discount Model (LO1, CFA3) A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7 percent and the risk premium for this stock is 4 percent. If the annual dividend is expected to remain at $2.10, the value of the stock is closest to:

a. $19.09

b. $30.00

c. $52.50

d. $70.00

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