Question: A stock is expected to pay its first $ 41 dividend in 5 years from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $41 dividend in 5 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 4% pa. Estimate the current stock price. The current stock price should be:

Select one:

a. $481.41

b. $500.67

c. $541.67

d. $585.71

e. $810.07

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