NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.25 a share. The following dividends will be $.40,$.60,and $.75 a share annually for the following three years,respectively. After that,dividends are projected to increase by 3.5% per year. How much are you willing to pay to buy one share of this stock if your desired rate of return is 12%?
A) $1.45
B) $5.80
C) $7.25
D) $9.06
E) $10.58

Question

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The Answer of NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.25 a share. The following dividends will be $.40,$.60,and $.75 a share annually for the following three years,respectively. After that,dividends are projected to increase by 3.5% per year. How much are you willing to pay to buy one share of this stock if your desired rate of return is 12%?
A) $1.45
B) $5.80
C) $7.25
D) $9.06
E) $10.58

NU YU Announced Today That It Will Begin Paying Annual