Question: Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.50 per share in

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.50 per share in 4 years. This dividend will grow at 14 percent indefinitely. Using a 16 percent discount rate, compute the value of this stock.

*Show your work

A) $48.05

B) $85.50

C) $47.22

D) $135.80

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