Crater industries just paid an annual dividend of 150 and


Crater Industries just paid an annual dividend of $1.50 and is expected to pay annual dividends of 1.65 and 2.805 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 5 percent per year. What is the value of this stock today if the required return is 13 percent?

a) 29.56

b)29.97

c) 30.29

d) 31.03

e) 32.49

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Financial Management: Crater industries just paid an annual dividend of 150 and
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