WHAT WOULD BE THE PRICE OF A STOCK TODAY WHEN DIVIDENDS ARE EXPECT...
19. What would be the price of a stock today when dividends are expected to
grow at a 25 percent rate for three years, then grow at a constant rate of 5
percent forever, if the stock's required rate of return is 13 percent and next year's
dividend will be $4?
A) $61.60
B) $62.08
C) $68.64
D) $79.44