Question: PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU! Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00).

PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU!

Redverb Inc. paid a dividend of $5.00 last year (D0 = $5.00). The market consensus is that the company's dividend will grow by 21% per year for 2 years, and at a constant rate of 6.8% in Year 3 and thereafter. The companys cost of equity is 15.0%. What is the terminal value of the stock at the end of Year 2?

	A.	$102
	B.	$92
	C.	$108
	D.	$95

	A.	$92
	B.	$88
	C.	$73
	D.	$83

	A.	6.8%
	B.	7.7%
	C.	8.1%
	D.	8.2%

PLEASE SHOW WITH WORK AND WITH CALCULATOR WORK IF NECESSARY :) THANK YOU!

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