Question: A stock is expected to pay its first $3.6 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever

A stock is expected to pay its first $3.6 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever and grow by -1% pa (note the negative sign). The discount rate is 8% pa. Estimate what the stock price will be in 2.25 years from now. The stock price at time 2.25 is expected to be: $40.3693

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