Question: A stock is expected to pay its first $ 320 dividend in 1 year from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $320 dividend in 1 year from now. 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 the current stock price. The current stock price should be:

$6,400

$4,320

$4,000

$3,809.52

$3,628.12

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