Problem:
Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future.
Required:
Question: What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 10%?
a) $30.22
b) $24.00
c) $23.97
d) $34.29
Note: Show all workings.