Question: A firm does not pay a dividend. It is expected to pay its first dividend of $0.10 per share in three years. This dividend will

A firm does not pay a dividend. It is expected to pay its first dividend of $0.10 per share in three years. This dividend will grow at 11 percent indefinitely. Using a 13 percent discount rate, compute the value of this stock.

A) $3.47

B) $4.42

C) $3.92

D) $5.55

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