Question: A stock is expected to pay its first $ 1 dividend in 2 years from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $1 dividend in 2 years from now. The dividend is expected to be paid annually forever and grow by -2% pa (note the negative sign). The discount rate is 4% pa. Estimate the current stock price. The current stock price should be:

Select one:

$14.8166

$15.4093

$16.0256

$16.6667

$22.2249

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