The Sister's Market is preparing to pay its first dividends. It is going to pay $.60, $1.10, and $1.50 a share over the next 3 years, respectively. After that, the company has stated that the annual
Dividend will be $1.98 per share indefinitely. What is this stock worth to you per share if you demand
A 9% rate of return?
A) $18.22
B) $18.65
C) $19.08
D) $19.62
E) $20.11
Correct Answer:
Verified
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