Question: A stock is expected to pay its first $3.6 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 $3.6 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 2% pa (note the negative sign). The discount rate is 8% pa. Estimate what the stock price will be in 5.25 years from now. The stock price at time 5.25 is expected to be: Select one: a. $32.3772 b. $33.3013 c. $35.9654 d. $36.6994 e. $38.8426

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