Question: Management has recently announced that expected dividends for the next three years will be as follows: YEAR DIVIDEND 1 1.1 2 2 3 2 After

Management has recently announced that expected dividends for the next three years will be as follows:


YEAR	DIVIDEND
1	1.1
2	2
3	2

After year 3, dividends are expected to grow at the rate of 5.2% per year. An appropriate required return for the stock is 9%. What should be the stock worth today?

47.85

43.46

46.99

44.88

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