Question: A common stock will pay a $2 dividend next year. $2.50 in two years. $4 in there years, and $6 in four years. After the

A common stock will pay a $2 dividend next year. $2.50 in two years. $4 in there years, and $6 in four years. After the fourth year, the dividend will grow at a 5% in perpetuity. The appropiate discount rate is 7%. What is the price of the stock today?

A) $19.94

B) $285.47

C) $252.21

D) 199.42

E) 179.47

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