Question: A stock is expected to pay its first $ 0.8 dividend in 2 years from now (t=2). The dividend is expected to be paid annually

A stock is expected to pay its first $0.8 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Estimate what the stock price will be in 3.25 years from now. The stock price at time 3.25 is expected to be:

Select one:

$14.2393

$12.4372

$11.6235

$11.4286

$10.8631

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