A financial analyst expects KacieCo.to pay a dividend of $2 per share one year from today,a dividend of $3 per share in years two,and estimates the value of the stock at the end of year two to be $22.If your required return on KacieCo stock is 14 %,what is the most you would be willing to pay for the stock today if you plan to sell the stock in two years?
A) $20.99
B) $26.75
C) $26.90
D) $27.00
Correct Answer:
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