Super sounds has decided to reduce the annual dividends by 20% a year for the next three years. After that they will maintain a constant dividend of $1 a share. The company just paid a dividend of $2.25 on one share of its stock. What is the market value of this stock if the required rate of return is 16%? 

a. $7.60 

b. $7.36 

c. $6.25 

d. $5.00

Answer rating: 100% (QA)

Correct option is b 736 Explanation D0 225 D1 225 1 20 18... View the full answer