How much is the stock worth


Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $8/year forever. If you require 18 percent rate of return on investments in this risk class, how much is this stock worth to you?

A. $37.77

B. $55.99

C. $45.68

D. $50.50

E. $41.46

F. $34.54

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Microeconomics: How much is the stock worth
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