$1$ P$8-4$ Stock Values $[$LO$1]$

Hudson Corporation will pay a dividend of $$5\mathrm{.}10$ per share next year. The company

pledges to increase its dividend by $5\mathrm{.}50$ percent per year indefinitely.

If you require a return of $13\mathrm{.}90$ percent on your investment, how much will you pay for

the company's stock today?

Multiple Choice

$$63\mathrm{.}14$

$$60\mathrm{.}71$

$$24\mathrm{.}92$

$$57\mathrm{.}55$

$$58\mathrm{.}29$