The common stock of A.G.Tailor has a required return of 16 percent.The latest press release stated that last year's dividend was $0.90 per share and that future dividends will increase by 15 percent for the following 3 years.After that,the dividend growth rate will be 3 percent indefinitely.What is one share of this stock worth to you today?
A) $8.42
B) $9.60
C) $10.26
D) $10.75
E) $12.03
Correct Answer:
Verified
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