Analysts expect Marble Comics to pay shareholders $1.00 per share annually for the next five years. After that, the dividend will be $1.50 annually forever. Given a discount rate of 10%, what is the value of the stock today?
A) $6.55
B) $9.87
C) $12.37
D) $13.10
E) $21.88
Correct Answer:
Verified
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