Macaroni Inc.announced that it would pay the following dividends over the next five years: $0.50,$0.75,$1.50,$3,and $4.Afterwards,dividends will decline at a rate of 3 percent per year indefinitely.What is the firm's current stock price if the required rate of return is 13%?
A) $30.33
B) $24.25
C) $19.24
D) $17.73
Correct Answer:
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