Question: A stock is expected to pay its first $2.2 dividend in 3 years from now (t=3). The dividend is expected to be paid annually forever

A stock is expected to pay its first $2.2 dividend in 3 years from now (t=3). The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 5% pa. Estimate what the stock price will be in 3.25 years from now. The stock price at time 3.25 is expected to be: Select one: O a. $24.9081 O b. $27.0024 O c. $27.2914 O d. $27.5 e. $32.2254

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