Question: need help on this question A stock is expected to pay its first $4.3 dividend in 2 years from now ( t=2). The dividend is
A stock is expected to pay its first $4.3 dividend in 2 years from now ( t=2). The dividend is expected to be paid annually forever and grow by 2% pa inote the negative sign). The discount rate is 8% pa. Estimate what the stock price will be in 3.25 years from now. The stock price at time 3.25 is expected to be: Select one: a. $47,3422 b. $42.9586 c. $42.0995 d. $40.2674 e. $38.981
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