Question: A stock is expected to pay its first $ 61 dividend in 8 years from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $61 dividend in 8 years from now. The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 5% pa. Estimate the current stock price. The current stock price should be:

Select one:

$1,220

$928.0312

$867.0312

$825.744

$786.4229

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