Question: A stock is expected to pay its first $ 80 dividend in 1 year from now. The dividend is expected to be paid annually forever

A stock is expected to pay its first $80 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 2% pa. Estimate the current stock price. The current stock price should be:

Question 10Select one:

$1,537.87

$1,568.63

$1,600

$1,680

$3,844.68

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