Question: A stock is expected to pay its first $800 dividend in 1 year from now. The dividend is expected to be paid annually forever and

A stock is expected to pay its first $800 dividend in

A stock is expected to pay its first $800 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 4% pa. Estimate the current stock price. The current stock price should be: Select one: a. $18,491.12 b. $12,228.57 c. $11,428.57 d. $10,989.01 e. $10,566.36

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