assignmentcafe.com – Worst Buy Corp. has a strange dividend outlook. This firm has just paid a dividend of $1 and expects to pay $1.25 one year from today; $1.75 two years from today and $2.00 three years from today. 2022 latest answers

assignmentcafe.com –

Worst Buy Corp. has a strange dividend outlook. This firm has just paid a dividend of $1 and expects to pay $1.25 one year from today; $1.75 two years from today and $2.00 three years from today.

 After that period the dividend policy will stabilize and dividends are expected to grow at a constant rate of 4.5% for indefinite future. If the required rate of return is 11%, calculate the stock’s current market value.

 

Group of answer choices

 

$15.67

 

$27.52

 

$16.08

 

$18.18

 

$28.52