After that time the dividends will be held constant at 160


Marshall Arts Studios just paid an annual dividend of $1.36 a share. The firm plans to pay annual dividends of $1.40, $1.46, and $1.58 over the next 3 years, respectively. After that time, the dividends will be held constant at $1.60 per share. What is this stock worth today at a 9 percent discount rate?

$14.08

$14.30

$16.67

$16.79

$17.46

The answer on previous posts is showing 17.802 which is not an option.

 

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Finance Basics: After that time the dividends will be held constant at 160
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