You are asked by the Chief Financial Officer of your firm to predict what the firm's stock price will be exactly 4 years from today.If your firm is expected to grow at 3% indefinitely and the cost of capital is 10% while the expected annual dividend one year from today is $10,then what should be the price of your firm's stock 4 years from today?
A) $142.86
B) $160.79
C) $112.55
D) none of the above
Correct Answer:
Verified
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