The Sports Club plans to pay an annual dividend of $1.20 per share next year,$1.00 per share a year for the following two years,and then cease paying dividends altogether.How much is one share of this stock worth to you today if you require a 19 percent rate of return?
A) $2.31
B) $2.36
C) $2.56
D) $2.60
E) $2.64
Correct Answer:
Verified
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