A stock is expected to pay its first $$140$ dividend in $1$ year from now. The dividend is expected to

be paid annually forever and grow by $-2\%$ pa $($note the negative sign$).$ The discount rate is $2\%$

pa$.$ Estimate the current stock price. The current stock price should be:

Select one:

a$.$ $$3,431\mathrm{.}37$

b$.$ $$3,500$

c$.$ $$3,640$

d$.$ $$6,728\mathrm{.}18$

e$.$ $$7,000$

A stock is expected to pay its first $$21$ dividend in $8$ years from now. The dividend is expected to

be paid annually forever and grow by $2\%$ pa$.$ The discount rate is $4\%$ pa$.$ Estimate the current

stock price. The current stock price should be:

Select one:

a$.$ $$1,050$

b$.$ $$818\mathrm{.}91$

c$.$ $$797\mathrm{.}91$

d$.$ $$767\mathrm{.}22$

e$.$ $$368\mathrm{.}86$