Question $22$

$5$ pts

Terry Technology Company is changing their dividend policy. The company just paid a dividend of $$2\mathrm{.}85,$ but management expects to reduce the payout by $8$ percent per year indefinitely. If you require a return of $10$ percent on this stock, what will you pay for a share today?

$$ $$22\mathrm{.}50$

$$ $$18\mathrm{.}16$

$$17\mathrm{.}68$

$$ $$14\mathrm{.}57$

$$ $$11\mathrm{.}20$