Question: Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.75 per share in

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.75 per share in 2 years. This dividend will grow at 12 percent indefinitely. Using a 14 percent discount rate, compute the current value of this stock.

Multiple Choice

$32.89
$37.50
$38.25
$33.64

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