Mega Inc Is Expected to Pay a Dividend of $2

Mega Inc. is expected to pay a dividend of $2.00 per share next year. The dividends are expected togrow at a constant rate of 5% per year indefinitely. If investors require a 12% return on Mega stock,what is the current price?

A) $32.00
B) $16.67
C) $30.00
D) $28.57