Heleveton, Inc. currently pays a common stock dividend of $2.00 per share (D0). Dividends are expected to increase by $0.50 per share next year. Determine the current value of Heleveton's common stock to an investor who expects to be able to sell the stock for $32 after one year. Assume that the investor requires a 12% rate of return on the security.
- $30.36
- $30.80
- $20.83
- $33.05