Question: A stock is expected to pay its first $0.1 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever

A stock is expected to pay its first $0.1 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by -2% pa (note the negative sign). The discount rate is 7% pa. Estimate what the stock price will be in 4.75 years from now. The stock price at time 4.75 is expected to be: Select one: a. $1.0094 b. $1.0925 c. $1.1689 d. $1.2508 e. $1.5323

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