Question: It is forecasted that Ray Corp. will pay its first dividend four years from now in the amount of $4.20 and dividends will increase at

It is forecasted that Ray Corp. will pay its first dividend

It is forecasted that Ray Corp. will pay its first dividend four years from now in the amount of $4.20 and dividends will increase at a constant rate of 6% for the foreseeable future after that. If the market capitalization rate is 11%, at what price would you expect the firm to sell? A. $54 B. $55 C. $61 D. $84

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