Martin's Inc. is expected to pay annual dividends of $2.50 a share for the next three years. After that, dividends are expected to increase by 3% annually. What is the current value of this share to you if you require a 9% rate of return on this investment?
A) $42.92
B) $40.11
C) $41.81
D) $39.47
Correct Answer:
Verified
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