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

A stock is not expected to pay dividends for the next seven years. Eight years from today, the stock is expected to pay a dividend of $5.82 per share. Dividends will then grow at 4.50 percent per year indefinitely. The expected return on this stock is 13 percent. What is one share of the stock worth today?

$37

$49

$26

$68

$29

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