Business Services,Inc.is expected to pay its first annual dividend of $0.80 per share three years from now.Starting in year six,the company is expected to start increasing the dividend by 2 per cent per year.What is the value of this stock today at a required return of 12 per cent?
A) $7.22
B) $6.16
C) $6.63
D) $7.47
E) $6.47
Correct Answer:
Verified
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