Nu-Tek,Inc. is expecting a period of intense growth and has decided to retain more of its earnings to help finance that growth. As a result it is going to reduce its annual dividend by 10% a year for the next three years. After that,it will maintain a constant dividend of $.70 a share. Last month,the company paid $1.80 per share. What is the value of this stock if the required rate of return is 13%?
A) $6.79
B) $7.22
C) $8.22
D) $8.87
E) $9.01

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The Answer of Nu-Tek,Inc. is expecting a period of intense growth and has decided to retain more of its earnings to help finance that growth. As a result it is going to reduce its annual dividend by 10% a year for the next three years. After that,it will maintain a constant dividend of $.70 a share. Last month,the company paid $1.80 per share. What is the value of this stock if the required rate of return is 13%?
A) $6.79
B) $7.22
C) $8.22
D) $8.87
E) $9.01