Bavarian Sausage is expected to pay a $1.57 dividend next year and investors expect that dividend to grow by 5% each year forever.If the required return on the stock investment is 14%,what should be the price of the stock in 5 years?
A) $18.32
B) $22.28
C) $21.22
D) $17.44
Correct Answer:
Verified
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