Question: Needing some help with this question please A stock is expected to pay its first $1.5 dividend in 2 years from now (t=2). The dividend

Needing some help with this question please

A stock is expected to pay its first $1.5 dividend in 2 years from now (t=2). The dividend is expected to be paid annually forever and grow by 2% pa (note the negative sign). The discount rate is 5% pa. Estimate what the stock price will be in 2.25 years from now. The stock price at time 2.25 is expected to be: Select one: a. $20.4763 b. $20.8326 c. $21.2577 d. \$21,3206 e. $216915 The correct answer is: $21.2577

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