Smith Construction,Inc.is expected to pay a $2.78 dividend next year.The dividend is expected to grow by 4% each year for the next three years.After that the company will never pay another dividend ever again.If your required return on the stock investment is 10%,what should the stock sell for today?
A) $7.46
B) $28.91
C) $35.06
D) $9.31
Correct Answer:
Verified
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