Question: A stock is expected to pay its first $ 36 dividend in 8 years from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $36 dividend in 8 years from now. The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 3% pa. Estimate the current stock price. The current stock price should be:

Select one:

$919.7001

$600

$487.8549

$473.6456

$459.8501

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