Question: Software sales supply is expected to pay its first annual dividend of $1.10 per share in year 3. Starting in Year 6 the company plans

Software sales supply is expected to pay its first annual dividend of $1.10 per share in year 3. Starting in Year 6 the company plans to increase the dividends by 3.2% per year. What is the value of this stock today, Year 0 at a required return of 13.1%?

1. $8.22

2. $11.31

3. $11.49

4. $10.35

5. $12.66

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