Question: A stock is expected to pay its first $11 dividend in 5 years from now. The dividend is expected to be paid annually forever and

A stock is expected to pay its first $11 dividend in 5 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 7% pa. Estimate the current stock price. The current stock price should be: Question 13 Select one: a. $81.44 b. $87.14 c. $93.24 d. $104.24 e. $104.71

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