Question: There is a small company that currently does not pay dividends. However, 4 years from now the company is expected to pay an annual dividend

There is a small company that currently does not pay dividends. However, 4 years from now the company is expected to pay an annual dividend of $1.50 (Hint: D4=$1.50). The dividend will then grow by 6% annually forever. Suppose the market requires an annual return of 8% on the company's stocks, what should be the stock price today? O A) $59.54 B) $58.43 OC) $55.13 OD) $56.23

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