A stock is expected to pay its first $940 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 6Select one:

a.

$18,431.37

b.

$18,800

c.

$19,740

d.

$45,174.93

e.

$47,000