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 -1% pa (note the negative sign). The discount rate is 6% pa. Estimate what the stock price will be in 6.25 years from now. The stock price at time 6.25 is expected to be: Question 15Select one: a. $2.0562 b. $1.5365 c. $1.4207 d. $1.4107 e. $1.3416

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