Mack Industries just paid a dividend of $1.00 per share , and 15 percent next year. After two years the dividend is expected to grow at a constant rate of 5 percent. The required rate of return on the company's stock is 12 percent. What should be the current price of the company's stock?
A) $12.33
B) $16.65
C) $16.91
D) $18.67
E) $19.67

Question

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The Answer of Mack Industries just paid a dividend of $1.00 per share , and 15 percent next year. After two years the dividend is expected to grow at a constant rate of 5 percent. The required rate of return on the company's stock is 12 percent. What should be the current price of the company's stock?
A) $12.33
B) $16.65
C) $16.91
D) $18.67
E) $19.67

Mack Industries Just Paid a Dividend of $1