Question: A stock is expected to pay its first $0.8 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 $0.8 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 3% pa. The discount rate is 8% pa. Estimate what the stock price will be in 4.25 years from now. The stock price at time 4.25 is expected to be: Question 3Select one: a. $18.1417 b. $16.6022 c. $16.3108 d. $15.6492 e. $15.1026

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