Jackson Systems made two announcements on its outstanding stock today. First, the company announced that the dividend for the next year will be $2.20 a share. Secondly, all dividends after that will increase by 3 percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 14 percent rate of return? 

A. $12.95 

B. $15.70 

C. $20.00 

D. $21.25 

E. $22.00

Answer rating: 100% (QA)

Here Dividend for next year D1 220 steady growth rate g 3 ... View the full answer