Mario's is going to pay $1,$2.50,and $5 a share over the next three years,respectively.After that,the company plans to pay annual dividends of $1.25 per share indefinitely.If your required return is 13 percent,how much are you willing to pay for one share today?
A) $13.87
B) $10.87
C) $11.67
D) $12.97
E) $13.67
Correct Answer:
Verified
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