Question: A stock is expected to pay its first $2.9 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever

A stock is expected to pay its first $2.9 dividend in

A stock is expected to pay its first $2.9 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 3% pa. The discount rate is 8% pa. Estimate what the stock price will be in 4.25 years from now. The stock price at time 4.25 is expected to be: Select one: a. $63.8569 O b. $60.1831 O c. $59.1267 d. $58 e. $54.747

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