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From the following information calculate the price of the stock. The stock will pay its first...

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Finance

From the following information calculate the price of the stock.The stock will pay its first annual dividend of $1.00 four yearsfrom now. The dividends for years 5 and 6 will be $1.20 and $1.30,respectively. After year 6, dividends will grow by 2.00% p.a.forever. The required rate of return is 12.00% p.a.

a. $3.50 b. $11.52 c. $9.74 d. $16.49 e. $8.69

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