The Back Room just paid an annual dividend of $1.75 a share. The firm expects to pay dividends forever and to increase the dividend by 3.5 percent annually. What is the expected value of this stock six years from now if the discount rate is 10 percent?

Multiple Choice

• $33.72

• $34.00

• $34.25

• $34.93

• $35.23

Answer rating: 100% (QA)

Step 1 We have been given here Current dividend per share ie Do 175 Growth rate ie ... View the full answer