Question: A stock is expected to pay $1.75 per share every year indefinitely and the equity cost of capital for the company is 7.9%. What price

A stock is expected to pay $1.75 per share every year indefinitely and the equity cost of capital for the company is 7.9%.

What price would an investor be expected to pay per share ten years in the future?

A.

$ 33.23

B.

$ 22.15

C.

$ 55.38

D.

$ 44.30

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