Question: A stock is not expected to pay dividends for the next six years. Seven years from today, the stock is expected to pay a dividend

A stock is not expected to pay dividends for the next six years. Seven years from today, the stock is expected to pay a dividend of $8.82 per share. Dividends will then grow at 5 percent per year indefinitely. The expected return on this stock is 13 percent. What is one share of the stock worth today?

Group of answer choices

a.$47

b.$81

c.$110

d.$66

e.$53

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