Distant Groves announced today that it will begin paying annual dividends next year. Dividends for the first three years will be $2.15, $3.20, and $4.27 a share, respectively. After that, dividends are projected to increase by 5 percent per year. What is one share of this stock worth today at a required return of 12 percent?

	A.	$64.86
	B.	$53.10
	C.	$45.17
	D.	$34.55

Answer rating: 100% (QA)

Year 4 dividend 427 105 44835 Value at year 3 D... View the full answer