Auto Transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent?
A) $13.67
B) $14.21
C) $14.83
D) $15.08
E) $15.60
Correct Answer:
Verified
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