The Shoe Box will not pay a dividend for the next two years. The following two years, it will pay annual dividends of $1 per share. Starting in Year 5, the dividends will increase by 4 percent annually. The discount rate is 8 percent. What is the value of this stock today?
A)$18.18
B)$20.64
C)$22.63
D)$24.08
E)$27.09

Question

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The Answer of The Shoe Box will not pay a dividend for the next two years. The following two years, it will pay annual dividends of $1 per share. Starting in Year 5, the dividends will increase by 4 percent annually. The discount rate is 8 percent. What is the value of this stock today?
A)$18.18
B)$20.64
C)$22.63
D)$24.08
E)$27.09

The Shoe Box Will Not Pay a Dividend for the Next