Question $16$

$0pts$

Bliley Plumbers pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $$0\mathrm{.}20$ a share for three years commencing three years from today $($ie$,$ in years $3,4$ and $5).$ Beginning in year $6,$ the company plans on paying a constant $$1$ a share dividend each year forever. How much are you willing to pay to buy a share of this stock if your required return is $10$ percent?

$$6\mathrm{.}62$

$$4\mathrm{.}54$

$$5\mathrm{.}79$

$$5\mathrm{.}11$

$$3\mathrm{.}66$

$$7\mathrm{.}65$