Question: Distant Groves announced today that it will begin paying annual dividends next vear. Dividends for the first three years will be $2.70, $4.20, and $6.25

Distant Groves announced today that it will begin paying annual dividends

Distant Groves announced today that it will begin paying annual dividends next vear. Dividends for the first three years will be $2.70, $4.20, and $6.25 a share, respectively. After that, dividends are projected to increase by 3.8 percent per year forever. What is one share of this stock worth today at a required return of 11.2 percent? A. $87 OB. $74 O C. $77 D. $84

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