Stan expects Terta Corp. to pay its first dividend of $3 in five years. He expects the dividend to grow at 6% thereafter, and his required return on the stock is 9.5%. The largest amount that Stan should pay for the stock is closest to:
A) $54.
B) $60.
C) $68.
D) $86.

Question

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The Answer of Stan expects Terta Corp. to pay its first dividend of $3 in five years. He expects the dividend to grow at 6% thereafter, and his required return on the stock is 9.5%. The largest amount that Stan should pay for the stock is closest to:
A) $54.
B) $60.
C) $68.
D) $86.

Stan Expects Terta Corp