Question: A stock is expected to pay its first $ 21 dividend in 7 years from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $21 dividend in 7 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 2% pa. Estimate the current stock price. The current stock price should be:

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$896.1649

$487.185

$466.185

$457.0441

$448.0825

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