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Lightbulb Corp. (LC) plans to pay a dividend of $0.50 in one year, after that,...

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Finance

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Lightbulb Corp. (LC) plans to pay a dividend of $0.50 in one year, after that, analysts predict a 3% growth rate in earnings per year for 19 years. This will account for 20 years of dividends, and the expected price in 20 years is $15. Comparable investments have a rate of return of 4%. If LC expects to keep its dividend payout ratio constant, which is closest to the price you should expect to pay for the stock today

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