Old Style Corporation Produces Goods That Are Very Mature in Their

Old Style Corporation produces goods that are very mature in their product life cycles. Old Style Corporation is expected to have per share FCFE in year 1 of $1.00, per share FCFE of $0.90 in year 2, and per share FCFE of $0.85 in year 3. After year 3, per share FCFE is expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%. The stock should be worth _______ today.

A) $127.63
B) $10.57
C) $20.00
D) $22.22
E) $8.98