After that time it plans to pay 125 a share for 2 years


Albury Inc, paid its first annual dividend yesterday in the amount of $0.18 a share. The company plans to double each annual dividend payment for the next 3 years. After that time, it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent?

A. $12.32

B. $12.77

C. $13.20

D. $14.26

E. $14.79

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Business Management: After that time it plans to pay 125 a share for 2 years
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